38th  Congress,  )     HOUSE  OF  REPRESENTATIVES.         f  Report 

1*/  Session.  f 


0 

{Report 
No.  111. 


NEW  YORK  CUSTOM-HOUSE. 


June  15,  18G4. — Laid  on  the  table,  and  ordered  to  be  printed. 


Mr.  Hulburd,  from  the  Committee  on  Public  Expenditures,  made  the  following 

report. 

On  the  11th  day  of  January,  1864,  the  House  adopted  the  following  resolu- 
tion : 

"  Resolved,  That  the  charges  recently  made  of  official  misconduct  in  tbeNew 
York  custom-house,  in  regard  to  the  alleged  shipment  of  contraband  goods  and 
supplies,  and  all  matters  of  alleged  misconduct  in  the  management  of  the  affairs 
of  the  custom-house  at  New  York,  be  referred  to  the  Committee  on  Public  Expen- 
ditures." 

On  the  Slst  of  January,  1864,  the  committee  commenced  taking  testimony  on 
the  matters  thus  specially  referred.  Without  having,  satisfactorily  to  themselves, 
concluded  their  labors,  they  instruct  their  chairman  to  submit,  at  this  time,  the 
following  report : 

The  duties  of  the  New  York  custom-house  are  classified  and  distributed  into 
ten  divisions.  At  the  head  of  the  first  division  is  the  auditor ;  at  the  head  of 
the  bureau  of  the  second  division  is  the  cashier ;  each  of  the  remaining  eight 
divisions  is  presided  over  by  a  deputy  collector.  Supervising  all  these  depart- 
ments is  the  assistant  collector  and  the  collector. 

Under  the  present  organization  and  assignment  of  duties  in  the  custom-house, 
the  ninth  division,  among  other  duties,  is  charged  with  "  the  taking  of  all  bonds 
required  by  law,  or  treasury  regulations,  on  shipments  to  domestic  or  foreign 
neutral  ports,  to  guard  against  the  same  being  used  to  give  aid  or  comfort  to 
the  insurgents."  The  receipt,  examination,  custody  and  cancellation  of  bonds 
taken  in  the  ninth  division  prior  to  October  28,  1*63,  since  that  period  have  been 
assigned  to,  and  made  part  of,  the  duties  of  the  deputy  collector  in  charge  of  the 
tenth  division. 

.The  collector's  first  authorization  to  require  such  bonds  was  a  treasury  reg- 
ulation founded  on  the  act  of  July  13,  1861.  The  provisions  of  the  supple- 
mentary act  of  May  20, 1862,  were  more  definite  and  explicit,  the  second  section 
declaring:  "  That  whenever  a  permit  or  clearance  is  granted  for  either  a  foreign 
or  domestic  port,  it  shall  be  lawful  for  the  collector  of  the  customs  granting  the 
same,  if  he  shall  deem  it  necessary,  under  the  circumstances  of  the  case,  to 
require  a  bond  to  be  executed  by  the  master  or  the  owner  of  the  vessel,  in  a 
penalty  equal  to  the  value  of  the  cargo,  and  with  sureties  to  the  satisfaction  of 
such  collector,  that  the  said  cargo  shall  be  delivered  at  the  destination  for  which 
it  is  cleared  or  permitted,  and  that  no  part  thereof  shall  be  used  in  affording  aid 
or  comfort  to  any  person  or  parties  in  insurrection  against  the  authority  of  the 
United  States." 

On  the  23d  of  May,  1862,  the  Secretary  of  the  Treasury  issued  instructions 
to  carry  out  the  provisions  of  this  act,  of  which  the  following  is  an  extract :  "In 
all  cases  where,  in  your  judgment,  there  is  ground  of  apprehension  that 


%     .      'T^rU  NEW  Y0RK  CUSTOM  HOUSE. 

I  Ob1"] 

any  goods,  wares,  or  merchandise  shipped  at  your  port  will  be  used  in  any  way 
for  the  aid  of  the  insurgents  or  the  insurrection,  you  will  require  substantial  se- 
curity to  be  given  that  such  goods,  wares,  or  merchandise  shall  not  be  transferred 
to  any  place  under  insurrectionary  control,  and  shall  not  in  any  way  be  used  to 
give  aid  or  comfort  to  such  insurgents." 

In  virtue  of  these  acts  and  instructions,  the  first  bond  was  taken  in  Septem- 
ber, 1S61.  Seven  thousand  nine  hundred  and  thirty-two  had  been  executed  up 
to  May,  1SG4. 

In  the  allotment  of  duties,  the  fourth  division  passed  upon  the  character  of 
the  shipments  and  parts  of  shipments  of  merchandise  which  must  be  covered  by 
these  bonds,  or  "substantial  security,"  before  clearances  could  be  granted.  The 
ninth  division  was  charged  Avith  the  technical  taking  and  safe-keeping  of  the 
required  bonds."  At  tie-  Xew  York  custom-house  these  bonds  were  deemed  the 
44  substantial  security"  indicated  in  the  treasury  instructions. 

When  it  is  considered  that  immediately  on  the  enforcement  of  the  blockade 
of  the  southern  coast  and  harbors,  trade  from  northern  ports  to  West  India  ports 
began  to  increase  largely,  a  sufficient  necessity  is  apparent  for  "substantial 
security"  that  the  rebels  should  not  be  aided  by  such  trade.  When  it  is  further 
considered  that  on  the  execution  of  such  bonds  nearly  all  kinds  of  merchandise, 
not  excepting  powder,  could  be  and  were  permitted  or  cleared  at  the  port  of 
New  York;  that  these  bonds  were  the  only  security  government  had  or  required 
that  the  insurgents,  through  the  agency  of  some  of  the  swarming  blockade  run- 
ners, should  not  be  profited  thereby,  a  sufficient  reason  is  apparent  for  exercising  the 
most  vigilant  consideration  of  the  character  and  responsibility  of  the  obligors, 
and  the  careful  scrutiny  and  safe-keeping  of  the  bonds  until  all  apprehension  of  in- 
surrectionary benefit  from  such  shipments  had  entirely  ceased. 

But  it  seems  neither  patriotic  considerations  nor  revenue  precautions  have 
entirely  effected  the  object  of  preventing  or  suppressing  this  illicit  and  unhal- 
lowed trade.  Goods  cleared  in  virtue  of  these  bonds  have  been  found  on  board 
of  captured  blockade  runners,  and  it  is  quite  apparent  that  large  quantities  of 
goods  thus  bonded  and  permitted  at  New  York  have  turned  up  in  the  hands  of 
rebel  agents  and  emissaries  in  the  West  India  ports.  Should  it  be  asked  why, 
in  such  cases,  prosecution  of  the  bonds  has  not  been  instituted,  it  must  be  an- 
swered, first,  the  intrinsic  difficulties  in  the  way  of  making  legal  proofs ;  and, 
secondly,  the  apprehension  that  very  many  of  the  bonds,  so  far  from  affording 
the  "substantial  security"  contemplated,  would,  in  law,  prove  to  be  very  unsub- 
stantial securities. 

The  duty  of  preparing  the  form  of  the  bond  to  be  used,  and  of  passing  upon 
the  correctness  and  sufficiency  of  the  offered  bonds,  was,  from  the  first,  substan- 
tially devolved  upon  II.  13.  Stanton,  deputy  collector,  at  the  head  of  the  ninth 
division. 

The  bonds  were  executed  before,  and  had  to  be  approved  by,  him  as  deputy  col- 
lector, and,  after  being  recorded  in  his  bureau,  were  supposed  to  remain  in  his 
custody  until  properly  cancelled  or  surrendered.  For  some  cause,  not  explained, 
in  the  preparation  of  the  form  of  the  bond  to  be  used,  the  plain  requirements  of 
the  act  of  May,  1S62,  were  disregarded;  shippers,  in  their  respective  cases,  be- 
came the  principal  obligors  in  the  bonds,  instead  of  the  owner  or  master  of  ves- 
sel, as  the  act  prescribed. 

Again  :  names  were  written  in  the  body  of  the  instrument  varying  from  those 
subscribed  to  it ;  one  obligor  signing  when  two  names  are  recited  as  makers  ; 
clerks  signing  bonds  for  employers  without  power  of  attorney ;  several  bonds 
with  no  sureties;  very  many  with  no  justification  certified;  deficiencies  of 
stamps  and  of  seals ;  and  in  one  instance  there  is  no  signature  whatever,  al- 
though properly  attested  by  D.  Cady  Stanton  as  subscribing  witness,  and  by 
the  signature  and  notarial  seal  of  Ii.  13.  Stanton ;  large  discrepancies  between 
the  footing  of  invoices  or  manifests  and  the  penal  sum  in  the  body  of  the  bond, 


NEW  YORK  CUSTOM  HOUSE. 


3 


Indicate  no  common  carelessness,  if  not  culpable  complicity.  Pressure  of  busi- 
ness, hurried  observance  of  the  formalties  of  attaching  seals  and  attesting  signa- 
tures, without  scrutinizing  examination,  perhaps  might  excuse  an  occasional  im- 
perfect instrument,  but  the  number  of  such  bonds  is  far  too  large  to  be  passed 
by  such  a  palliating  plea. — (  Vide  Exhibit  E.) 

It  is  noticeable  that  these  oversights,  deficiencies,  discrepancies,  imperfections, 
of  whatever  name  or  nature,  are  most  numerous  in  bonds  covering  merchandise 
clearing  for  ports  in  the  West  Indies.  - 

The  most  glaring  of  the  irregular  bonds,  as  yet  coming  to  the  knowledge  of 
the  committee,  is  one  covering  goods  said  to  have  been  bought  on  the  order  of 
Major  Walker,  the  agent  of  the  rebel  confederates,  now  or  recently  stationed  in 
St.  George's,  Bermuda.  This  bond  (in  custom-house  books,  No.  4712)  was  signed 
by  A.  Hoffnung  as  principal,  and  William  A.  Smalley  as  surety.  It  was  made 
and  taken  for  $28,796,  instead  of  $83,757,  which  the  invoice  or  ship's  manifest 
called  for. 

Other  bonds  covering  goods  shipped  to  Nassau  and  Bermuda  exhibit,  in  less 
sums,  the  same  discrepancies ;  for  example,  bond  No.  6028,  Lewis  Benjamin 
principal,  Malcom  Campbell  surety,  was  for  88,346,  should  have  been  for 
89,176;  bond  No.  3612,  W.  H.  Russell  principal,  Smalley  surety,  was  taken 
for  $6,101,  instead  of  826, 3S6;  bonds  Nos.  5129,  5105,  Hoffnung  principal, 
Benjamin  surety,  covered  in  figures  but  88,496,  instead  of  $44,772  ;  bond  No. 
4773,  principal  and  surety,  Hoffnung  and  Smalley,  was  for  $6,976,  instead  of 
825,505 ;  bond  No.  4932,  principal  and  surety  Hoffnung  and  Smalley,  was  for 
81,696,  instead  of  813,564;  bond  No.  4205,  S.  Seixas  principal,  Benjamin  surety, 
was  taken  for  $6,437,  instead  of  $34,631 ;  bond  No.  3550,  G.  G.  Wolf  principal, 
Benjamin  surety,  was  for  823,140,  instead  of  $70,452,  as  it  should  have  been. — 
(  Vide  Exhibit  E.)  When  it  is  recollected  that  the  act  of  1S62  declared,  in  so 
many  words,  that  such  bonds  should  be  executed  "in  a  penalty  equal  to  the 
value  of  the  cargo,"  it  would  seem  there  was  small  margin  for  arithmetical  mis- 
takes. Certainly  the  foregoing  array  of  discrepancies  is  far  too  large  to  be  expli- 
cable on  such  hypothesis.  And  how  shall  be  accounted  for  the  witnessing,  ac 
knowledging,  examining,  and  receiving  so  many  palpably  defective  and  decep- 
tive bonds  ? 

Again :  this  William  A.  Smalley,  who  figures  so  frequently  as  obligor  and 
surety  on  bonds  covering  these  Nassau  and  Bermuda  shipments,  up  to  the  15th 
of  December  last  was  a  debenture  clerk  under  the  surveyor  of  the  port.  When 
he  signed  as  surety  the  bond  (No.  4712)  covering  and  protecting  in  and  out  of 
the  harbor  of  New  York  the  rebel  government's  shipment,  (Major  Walker's 
order,)  he  held  that  position,  and  also  the  office  of  notary  public,  approving 
and  attaching  his  notarial  seal  to  this  class  of  bonds,  executed  and  justified  be- 
fore him,  in  the  absence  of  H.  B.  Stanton. 

It  appears  that  Mr.  Stanton,  while  acting  as  deputy  collector,  held  the  office  of 
notary  public,  and  in  verifying  papers  and  administering  oaths  to  principals  and 
sureties  of  bonds,  &c,  charged  and  received  fees  therefor.  It  further  appears 
that  while  deputy  collector  he  not  unfrequently  acted,  when  invited,  or  he  vol- 
unteered, as  legal  counsel  for  persons  and  firms  doing  custom-house  business  at 
his  bureau,  in  preparing  papers  and  affidavits  to  be  approved  and  used  by  and 
before  him  as  the  basis  of  his  official  judgment  and  action,  charging  and  receiv- 
ing for  such  service  a  compensation  varying  from  fifty  cents  to  twenty  dollars. 
In  his  volunteered  testimony  before  the  committee,  in  that  respect,  he  did  not  at 
all  qualify  the  statement  contained  in  his  published  letter,  viz  :  that  all  such 
foes  or  emoluments  would  not  exceed  three  thousand  dollars  during  his  term  of 
office,  except  that  he  admitted  the  anonymous  receipt  at  his  house,  and  in  part 
at  his  official  desk,  of  several  additional  hundred  dollars. 

While  there  may  be  no  express  statute  forbidding  such  professional  practice, 
such  exercise  of  notarial  powers,  such  clandestine  money  receipts,  the  committee 


4 


\i:\V   YORK  CUSTOM  HOUSE. 


are  very  decidedly -of  opinion  that,  for  the  most  obvious  reasons,  no  sucli  privi- 
leges can  be  allowed  during  business  or  official  hours,  without  detriment  to  pub- 
lie  interests  ;  no  such  anonymous  or  open  gratuities,  during  any  hours,  should 
be  allowed  or  accepted  by  any  salaried  official  of  government,  nor  ever  has  been, 
nor  ever  can  be,  without  the  gravest  BUSpicions. 

The  true  intent  and  meaning  of  Treasury  Regulation,  February  1,  1857,  if 
enforced,  would  seem  to  be  sufficient,  or  ought  to  be,  to  prevent  such  practices. 
It  is  in  these  words:  "Any  clerk  or  other  officer  of  the  customs  who  shall  ac- 
cept any  gratuity  whatever  lor  any  services  he  may  perform  for  any  purpose 
which  are  not  devolved  on  him  by  law  or  regulations,  will  become  subjected  to 
removal,  and  must  be  reported  to  the  department  forthwith  for  its  direction." 

The  committee  have  reason  to  believe  that  of  late,  in  conformity  with  law,  the 
master  or  owner  of  the  vessel  carrying  goods  to  ports  in  proximity  to  rebeldom 
have  been  required  to  go  on  the  bond  as  obligor. 

There  has  also  been  a  change  in  the  character  of  the  evidence  on  which  can- 
cellation can  be  effected.  At  first,  cancellation  of  these  bonds  seems  to  have 
been  easily  and  variously  obtained — the  shipper's  oath,  the  master's  oath,  the 
production  of  a  vague  and  general  consular  certificate  of  landing,  and  belief  of 
intended  consumption  of  goods  at  the  port  of  destination. — (Vide  Exhibits  C 
and  D.)  The  act  of  cancellation  also  seems  to  have  been  lightly  treated,  a  mere 
clerical  function  perfected  by  indorsement,  to  that  effect,  by  the  deputy  collector 
or  by  his  son,  D.  Cady  Stanton,  as  bond  clerk. 

The  rinding  of  some  of  these  bonded  goods  in  captured  blockade  runners  indi- 
cated the  insufficiency  of  such  checks,  or  consular  collusion  with  unprincipled 
shippers  and  blockade  runners;  in  either  case  the  result  was  the  same — evasion 
of  law  and  aid  or  comfort  to  the  rebel  enemy. 

No  doubt  the  utmost  vigilance  will  fail,  in  some  cases,  so  long  as  any  goods 
are  "permitted"  on  bonds,  from  the  obligations  of  which  the  obligors  can 
relieve  themselves  by  obtaining  certificates,  whose  makers  can  be  approached 
with  all  the  immunities  and  influences  that  gain  and  distance  and  foreign  citizen- 
ship impart.  This  liability  to  fraud  and  collusion  does  not  arise  from  any 
neglect  at  the  New  York  custom-house  in  administering  the  law,  but  is  organic 
in  traffic  carried  on  under  similar  circumstances,  however  regulated.  All  trade 
with  neutral  ports,  situated  in  such  close  proximity  to  belligerent  coasts,  is 
necessarily  exposed  to  great  abuses — abuses  to  be  avoided  only  by  total  non- 
intercourse.  Congress  has  not  seen  lit  to  impose  this  prohibition  upon  its 
citizens,  and,  until  it  does,  cannot  by  any  law,  or  prescribed  comity  of  nations, 
expect  its  abandonment  by  the  citizens  of  other  nationalities.  Indeed  it  could 
not  well  be  required,  for,  with  a  single  exception,  prior  to  the  rebellion,  with  all 
these  ports,  there  existed  a  very  considerable  legitimate  trade,  which  ought,  to 
be  sure,  to  be  properly  conducted,  but  could  not  be  well  ignored  or  inhibited 
by  our  government. 

It  is  believed  the  requirement  of  the  bonds  and  the  prudent  practice  of  hold- 
ing them  uncancelled  "until  such  lapse  of  time  as  would  render  improbable 
that  evidence  of  shipment  to  the  insurgents  of  the  bonded  goods  could  be 
obtained"  operates,  not  as  an  estopment,  but  as  a  check  and  great  repression 
of  all  participation  in  a  shameless  traffic  by  our  citizens. 

The  most  disreputable  circumstance  attending  the  whole  of  the  bond  business 
remains  yet  to  be  stated.  In  the  latter  part  of  the  summer  of  1863  it  was 
rumored  among  parties  engaged  in  the  West  India  island  trade  that  the  bonds 
given  in  connexion  therewith  could  be  "bought  up"  at  the  New  York  custom- 
house. When  these  reports  reached  the  collector,  Mr.  Barney,  though  dis- 
crediting them,  referred  the  matter  for  investigation  to  Deputy  Collector  Albert 
Hanscom,  who,  in  concert  with  the  naval  officer,  Mr.  George  Uenison,  after 
weeks  of  painstaking,  succeeded  in  obtaining  indubitable  evidences  of  the 
atrocious  malfeasance.    On  being  apprised  of  the  facts,  a  thorough  investiga- 


NEW  YORK  CUSTOM  HOUSE. 


5 


tion  was  at  once  instituted  by  the  Treasury  Department,  resulting  in  establish- 
ing the  abstraction  and  surrender,  for  pay,  of  bonds  in  the  custody  of  the  ninth 
division.  Thereupon  Deputy  Collector  H.  1$.  Stanton,  the  head  of  that  division, 
was  removed  from  it,  (October  28,  1863;)  his  son,  D.  Cady  Stanton,  "bond 
clerk,"  also  from  that  time  ceased  to  be  connected  with  the  custom-house. 
Privately,  and  to  an  extent  publicly,  this  young  man  declared  the  abstraction 
and  sale  of  bonds  was  his  own  act,  performed  without  the  privity  of  his  father. 
This  averment  he  reiterated  to  the  committee,  substantially  testifying  that  the 
bonds  were  prepared  by  himself,  generally,  in  an  outer  and  adjacent  room  to 
his  father's;  that  the  parties  then  executed  them  before  his  father;  that,  after 
such  execution,  invariably  they  were  locked  up  by  his  father  until  the  next 
morning ;  that,  after  being  carefully  examined  by  him,  they  were  taken  into  his 
(witness's)  said  adjoining  room  for  record,  where  they  were  supposed  to  remain 
until  cancelled  and  surrendered ;  that  in  this  room  he  had  at  all  times  free 
access  to  them.  He  was  quite  positive  that  he  never  abstracted  more  than 
seven,  or,  at  most,  eight  bonds — never  any  bond  on  the  same  day,  or  next  day 
after  its  execution — never  abstracted  or  gave  up  at  any  time  a  bond  as  large 
as  sixty-four  thousand  dollars.  Repeated  and  careful  examinations  of  the  bond 
bureau,  however,  reveal  the  abstraction,  or  at  least  absence,  of  several  more 
bonds  than  young  Stanton  admits  a  knowledge  of — bonds  not  found  in  the 
record  books  of  the  adjacent  room,  but  clearly  proved  to  have  hcen,  by  registered 
memoranda  of  dates,  shippers'  names,  destination  of  vessels,  manifests,  &c. 
Additional  to  all  this,  the  manifests  of  some  sixty  vessels  known  to  have  made 
trips  in  this  trade  are  not  to  be  found  in  the  custom-house.  Who  abstracted 
these  bonds  ?  Was  it  for  the  purpose  of  abstraction  they  were  never  recorded  ? 
Were  these  manifests  put  away  to  remove  all  vestiges  of  the  existence  of  other 
bonds,  or  the  character  of  the  shipments  1  No  traces  of  missing  bond:*,  as  yet, 
have  been  discovered  of  later  date  than  September  19,  1863. 

In  one  instance  the  proof  is  circumstantial  and  positive  that  the  terms  of  the 
abstraction  and  surrender  of  a  large  bond  of  $64,000  were  actually  negotiated 
before  it  was  executed,  and  that  within  one  hour  after  its  execution  the  bond 
was  given  up  and  in  the  hands  of  the  parties  who  made  it. 

For  various  reasons  this  case  seems  to  require  somewhat  of  detail.  The  bond 
was  for  a  large  amount,  and  whether  at  the  time  known  or  not,  does  not  clearly 
appear;  it  convoyed  out  of  port  "two  thousand  barrels  of  pork  and  five  hundred 
barrels  of  beef,"  to  a  party  in  Bermuda  who  was  openly  doing,  at  the  time — 
July,  1863 — a  commission  business  "with,"  if  not  "for,"  the  rebel  States. 

The  surety  on  that  bond  testified  before  the  committee  that,  through  the  inter- 
vention of  a  custom-house  broker  of  the  name  of  Henry  C.  Smith,  "within  ten 
minutes  before  the  bond  was  executed,  the  arrangement  was  consummated  that 
I  was  to  pay  $600  for  the  surrender  of  the  bond ;  that  I  was  not  to  be  sworn  as 
surety,"  &c.  It  appeared  that  the  proposed  surety  declined  justifying  or  swear- 
ing that  he  was  worth  $64,000,  and  that  the  first  price  asked  for  the  surrender 
of  the  bond  was  $650;  that  the  broker  Smith  went  into  "Mr.  Stanton's  room 
and  came  back  two  or  three  times"  before  the  price  of  $600  was  fixed  upon; 
and  that  surety  then  insisted,  "  Now,  if  Mr.  Stanton  is  going  to  sell  this  bond, 
what  odds  does  it  make  whether  I  swear  I  am  worth  $64,000  or  64  cents  ?  If  he 
has  a  mind  to  take  me  and  not  swear  me  I  will  go  on  the  bond ;  it  makes  no 
odds  to  him  if  he  sells  this  bond."  Smith  says,  "I  will  go  in  and  see  him."  He 
went  in  to  see  him;  was  gone  some  little  time;  came  back  and  said,  "That  will 
be  all  right;  he  will  not  ask  you  any  questions  at  all."  I  said,  "Are  you  sure  of 
that?"  He  said,  "That  is  understood."  The  cautious  witness  wanted  it  yet 
more  distinctly  understood  that  he  was  "not  to  swear  to  any  amount  at  all." 
Again  the  broker  went  in  and  came  back  with  the  assurance,  "It  is  all  right : 
you  will  not  be  asked  any  questions  at  all."  Thereupon  he,  the  surety,  and  the 
principal  or  proposed  obligor,  passed  from  the  rotundo  of  the  Exchange,  where 


6 


NEW   YORK   CUSTOM  HOUSE. 


these  preliminaries  had  been  arranged,  through  the  outer  or  adjacent  room, 
where  "  were  three  or  tour  clerks."  into  the  private  room  of  B.  B.Stanton, 
where  there  was  no  one  but  himself,  and  then  and  there  the  bond  was  executed 
before  H.  B.  Stanton,  and,  according  to  understanding,  no  question  was  asked, 
and  no  oath  administered ;  "that  within  an  hour  from  that  time,"  he  had  the 
bond  in  his  possession.  On  being  asked  if  Stanton's  son  filled  up  the  body  of 
the  bond,  he  stated  that  he  did  not  know  the  deputy  collector  had  a  son  about 
the  custom-house ;  never  heard  of  it  until  several  months  after;  that  the  clerk 
who  did  till  in  the  body  of  the  SG4.000  bond  is,  or  was  a  few  days  ago,  clerk 
there  still. 

This  witness  also  testified  that  in  all  these  preliminary  conversations  and  ne- 
gotiations, only  "Mr.  Stanton's  name"  was  used  by  the  broker  or  himself; 
that  in  several  subsequent  similar  arrangements  no  other  name  was  used;  that 
he  never  had  any  reason  to  believe  or  suspect  he  was  not  negotiating,  through 
the  broker,  with,  and  paying  money  to,  "  Deputy  Collector  Stanton."  As  con- 
firmatory of  the  correctness  of*  this  belief,  this  witness  stated,  on  another  occa- 
sion, when  Smith,  the  broker,  staid  some  time  in  the  bond  room  negotiating  for 
the  surrender  of  a  small  bond — being  in  a  hurry,  as  it  was  just  before  'change — 
he,  witness,  went  into  the  outer  or  front  room.  Smith  was  not  there.  He  then 
went  to  the  glass  door  opening  into  Mr.  Stanton's  private  room  ;  looking  through 
it  he  there  saw  Smith  leaning  on  the  desk  talking  to  Mr.  Stanton.  Witness 
"never  for  a  moment  supposed  that  there  was  anything  else  he  was  talking  of 
to  Mr.  Stanton  but  that  matter."  The  broker  "went  back  and  forth  two  or 
three  times."  Mr.  Stanton  would  not  yield  at  all.  Smith  said  that  Stanton 
said  "it  Was  just  as  much  risk  to  take  a  small  bond  as  a  large  one."  On  another 
occasion,  when  this  witness  "was  negotiating  for  the  surrender  of  a  bond,"  $25 
split  them,  and  finally  it  was  settled  by  his  (witness)  agreeing  to  pay  $100  be- 
fore :;  o'clock  thai  day,  Stanton  saying,  as  Smith  reported,  that  "he  wanted  to 
use  that  amount  that  day."    The  money  was  paid  and  bond  had. 

The  appearance  and  intelligence  of  this  witness,  repeatedly  recalled  and  care- 
fully questioned,  carried  conviction  to  the  minds  of  the  committee  that  his  state- 
ments were  honestly  made,  intended  to  be  truthful,  and  were  reliable. 

It  is  but  proper  and  just  to  state  that  the  broker  Smith  testifies  he  only  nego- 
tiated with  D.  Cady  Stanton ;  that  he  never  approached  H.  B.  Stanton  about 
the  sale  and  surrender  of  bonds ;  that  to  and  with  the  surety  already  spoken  of, 
he  "only  made  believe  doing  so ;"  he  "pretended  to  see  the  elder  Mr.  Stanton 
about  it,"  &c. 

The  appearance  of  this  witness,  during  his  first  examination,  produced  an  un- 
favorable impression  upon  the  committee.  The  impression  was  strengthened, 
rather  than  removed,  by  recalling  him  a  second  and  third  time.  It  is,  perhaps, 
worthy,  of  note  that  there  is  no  evidence  that  the  admitted  seven  or  eight  ab- 
stracted bonds  were  ever  recorded  in  the  outer  or  adjacent  room. 

It  is  admitted  that  II.  B.  Stanton  controlled  the  bond  business;  it  is  admitted 
that  from  the  first  the  bonds  were  not  taken  according  to  the  law  authorizing 
them.  It  appears  that  many  of  the  bonds  were  of  deceptive  and  insufficient 
amounts  ;  it  further  appears  many  of  the  bonds  were  defective  in  important  for- 
malities. It  is  proven  and  admitted  by  the  two  Stantons  and  Smith  that  the 
bonds  were  invariably  locked  in  II.  B.  Stanton's  own  desk  the  first  night  after 
they  were  executed.  13.  Cady  Stanton  swears  he  never  abstracted  over  eight 
bonds ;  never  any  bond  until  some  days  after  execution.  It  is  proven  that  a 
large  bond  was  delivered  up  inside  of  an  hour  after  it  was  executed.  It  is  ad- 
mitted and  proven  that  a  custom-house  broker  professed  to  negotiate  terms  of 
sale  and  surrender  of  bonds  with  H.  B.  Stanton.  It  is  proven  that  in  one  in- 
stance he  entered  H.  B.  Stanton's  private  room  avowedly  to  make  such  negotia- 
tion ;  that  immediately  after  coming  out,  a  circumstance  previously  concerted 
with  surety  followed,  in  which  II.  B.  Stanton  was  a  direct  participant. 


NEW  YORK  CUSTOM  HOUSE. 


7 


It  is  difficult  to  believe  that  the  broker  Smith  could  have  negotiated  the  sur- 
render of  the  864,000  bond  with  young  Stanton,  in  the  presence  of  two  or  three 
other  clerks,  passing  in  and  out  several  times  to  consult  the  party  thereto,  and 
that,  with  no  previous  knowledge  or  intimation  to  that  effect,  H.  B.  Stanton 
should  happen  neither  to  question  nor  properly  swear  the  surety  who  was  a 
party  negotiator  to  such  arrangement. 

Various  other  minor  corroborating  circumstances  appear  in  the  testimony 
taken,  to  which,  however,  the  committee  will  not  specially  advert,  believing  they 
have,  in  this  presentation  and  summary  of  thejbond  business,  nothing  extenuated 
nor  set  down  aught  in  malice. 

It  is  theory,  if  not  prescriptive  practice,  that  the  superior  is  responsible  for 
his  subordinate.  To  an  extent  this  official  accountability  is  proper  and  neces- 
sary. Circumstances  determine  the  cases  and  the  extent  to  which  this  account- 
ability attaches.  The  collector,  Mr.  Barney,  recommends,  but  does  not  directly 
appoint,  his  deputies.  It  is  also  true  that  his  duties  as  collector  of  the  great 
commercial  port  of  New  York,  inevitably  constant  and  multifarious,  necessarily 
forbid  a  personal  inspection,  if  not  supervision,  of  all  the  bureaus.  Yet  it  would 
seem,  from  his  own  evidence,  he  cannot  be  held  wholly  blameless  in  the  faulty 
form  of  this  bond.  He  testifies,  with  considerable  particularity,  that  the  form 
of  the  bond  was  submitted  to  him  for  approval.  Certainly  it  is  not  creditable 
that  a  form  so  radically  imperfect  should  have  been  in  daily  use  for  a  series  of 
months,  in  some  thousands  of  instances,  ere  it  was  made  conformable  to  the  law 
authorizing  it. 

As  the  result  of  very  considerable  inquiry  and  investigation,  the  committee 
are  constrained  to  believe  that  rebel  emissaries  in  several  of  the  West  India 
islands  are  yet  receiving  northern  shipments,  which  are  duly  forwarded  or  find 
their  way  into  the  insurrectionary  States.  It  is  significantly  said  "our  trade 
with  the  British  Indies  and  Cuba  has  increased  one  hundred  per  cent,  since  the 
breaking  out  of  the  rebellion."  The  probable  character  of  this  "trade"  is  not 
a  matter  of  conjecture  or  of  knowledge  derived  from  inspection  of  custom-house 
records.  In  one  instance  "  some  eight  or  nine  cannon,  boxed  and  marked  as 
'hardware,'"  were  shipped  per  steamer  Indus  from  New  York  to  Nassau.  In 
another  instance  "about  one  hundred  and  fifty  bales  of  blankets,  marked  U.  S. 
A.,"  were  put  on  board  a  steamer  in  that  trade  "after  she  had  cleared  at  the 
custom-house  and  was  anchored  in  the  stream.  The  blankets  were  not  cleared 
at  the  custom-house." 

Recently  an  extraordinary  trade  has  sprung  up  with  Matamoras,  a  neutral 
Mexican  port,  separated  by  an  inconsiderable  ferry  from  Brownsville,  the  dis- 
tributing entrepot  for  a  large  section  of  Texan  territory.  In  1S61  there  was 
but  one  arrival  at  New  York  from  Matamoras;  in  1862  there  were  twenty  ar- 
rivals; in  1863  there  were  seventy-one  arrivals;  in  1864,  to  the  18th  of  March, 
there  had  been  thirty-two  arrivals.  Prior  to  1861  a  clearance  from  the  port  of 
New  York  to  Matamoras  was  not  asked  for  once  a  year.  Will  it  be  believed, 
since  August  of  that  year,  "152  vessels,  with  an  aggregate  tonnage  of  nearly 
35,000  tons,  having  on  board  large  cargoes,"  have  been  cleared  for  that  desti- 
nation, and  that  all  this  is  legitimate  trade  for  home  consumption  in  Mexico  ? 

The  committee  have  no  means  at  hand  of  knowing  the  number  of  vessels  and 
the  amount  of  tonnage  engaged  in  this  trade  from  other  ports  of  the  United 
States,  but,  from  outside  statements,  are  well  prepared  to  believe  that  from 
eighty  to  one  hundred  vessels  have  been  seen  at  one  and  the  same  time  in  the 
mouth  of  the  Rio  Grande.  The  real  destination  and  consumption  of  goods 
landed  at  that  port  is  not  uncertain  surmise.  The  United  States  consul  at  Mata- 
moras, under  date  of  June  10,  1S63,  says:  "As  I  remarked  in  a  former  letter,  a 
great  portion,  say  eighty  per  cent.,  of  all  goods  imported  here  are  sold  directly 
or  find  their  way  to  Texas     Immense  stocks  are  also  being  imported  from 


8 


NEW  YORK  CUSTOM  HOUSE. 


France  .and  England,  and  both  banks  of  tho  Rio  Grande  are  piled  up  with  cot- 
ton, as  well  as  the  roads  from  the  interior  of  Texas  to  the  river." 

The  character  of  these  goods  is  the  same  as  in  former  years  were  the  goods 
shipped  to  Galveston,  Matagorda,  and  Point  Isabel.  The  return  cargoes  of 
vessels,  as  formerly,  consist  now  principally  in  cotton,  hides,  wool,  &c,  the 
well-known  products  of  Texas.  These  indices  indisputably  determine  the 
nature  of  this  trade.    (  Vide  Exhibit  G.) 

The  revenue  authorities  at  New  York  take  the  required  bonds  that  goods 
cleared  for  Matamoras  shall  be  landed  there,  and  be  consumed  within  Mexican 
territory.  Consular  certificates  certify  the  landing,  and  the  consignee  swears, 
u  to  the  best  of  his  knowledge  and  belief,"  that  said  goods  are  intended  for  such 
consumption;  and  on  the  production  of  such  papers,  the  shipper  demands  the 
cancellation  of  the  bonds.  Yet  as  late  as  January  25,  1864,  the  assistant  col- 
lector at  the  port  of  New  York,  in  a  letter  to  the  Treasury  Department,  said, 
"Very  little  reliance  can  be  placed  upon  the  usual  consular  certificates,  so  far  as 
the  ultimate  disposition  of  the  goods  to  which  they  refer  is  concerned." 

This  is  not  a  peculiarity  confined  to  the  Matamoras  trade.  It  was  proven 
before  the  committee,  by  a  witness  who  has  since  1861  spent  some  fifteen  months 
at  Nassau,  that,  openly,  "very  large  quantities  of  goods  are  landed  at  Nassau, 
such  as  boots,  shoes,  cloths  and  clothing,  drugs  and  medicines,  blankets,  liquors, 
and  provisions,  from  vessels  arriving  from  New  York,  Boston,  and  Baltimore," 
and  that  portions  of  these  same  goods  are  seen  shipped  on  board  blockade  run- 
ners for  Wilmington  and  other  rebel  ports. 

The  committee  are  informed,  and  have  reason  to  believe,  that  even  the  poor 
precaution  these  bonds  and  consular  certificates  afford  the  government  has  not 
been  required  by  the  collectors  at  Boston,  Philadelphia,  Baltimore,  and  other 
northern  ports.  Uniformity  assuredly  should  be  observed  at  the  principal 
shipping  ports  in  exacting  or  dispensing  with  these  bonds.  If  the  taking  of 
them  is  to  be  continued  anywhere,  the  sureties  should  by  law  be  required  to 
justify,  and  any  wilful  false  statement  in  an  affidavit  or  oath  of  justification 
should  be  declared  perjury,  and  subject  the  affiant  to  the  penalties  thereof. 

The  committee  directed  some  attention  to  allegations  in  circulation  that  mer- 
chants in  the  export  and  import  trade  of  New  Y^ork  were  subjected  to  grievous 
annoyances  and  damaging  delays  in  their  business  by  clerks  and  attaches  of  the 
custom-house,  without  the  employment  of  gratuities  or  fees  to  despatch  entries, 
clearances,  &c.  Whatever  clue  was  publicly  or  anonymously  indicated  the 
committee  endeavored  patiently  to  gather  up  and  follow  in  ferreting  out  such 
practices,  and,  while  they  found  evidence  of  former  practices  of  the  kind,  they 
are  constrained  to  say,  after  the  examination  of  several  reputed  sufferers  or 
victims,  and  after  summoning  before  them  merchants  of  high  standing  and 
character,  with  whom  expedition  was  supposed  to  be  more  of  an  object  than  a 
small  stipend,  or  an  occasional  donation,  they  obtained  no  evidence  of  any 
recent  exactions  or  bestowments  of  the  kind,  or  of  any  alleged  necessity  to 
resort  to  any  such  questionable  expedients  to  induce  reasonable  despatch  of 
business  at  the  New  Y^ork  custom-house. 

The  committee  also  made  it  a  part  of  their  business  to  investigate  the  truth  of 
reports  variously  circulated,  charging  seizures  of  goods  and  stores  made  by  the 
custom-house  authorities  for  alleged  frauds  upon  the  revenue  in  passing  false 
entries  to  have  been  instigated  for  purposes  of  extortion,  black-mailing,  &c.  In 
the  prosecution  of  this  line  of  inquiry  they  did  find  seizures  had  been  made, 
penalties  had  been  exacted,  seemingly  severe  and  disproportionate,  but  clearly 
within  the  provisions  of  laws  made  to  protect  the  revenue.  The  testimony  in 
some  of  the  cases  examined  gives  an  appearance  of  hardship  and  oppression  to 
the  action  of  the  revenue  officers.  It  must,  however,  be  borne  in  mind,  in  the 
language  of  a  witness,  that  "  each  case  of  successful  seizure  prevents  a  great 
many  attempts  to  evade  the  revenue  laws." 


NEW  YORK  CUSTOM  HOUSE.  9 

In  the  wide  investigation  with  which  the  committee  were  specially  charged, 
testimony  has  been  taken  on  other  points,  without,  as  yet,  a  satisfactory  conclu- 
sion having  been  reached. 

Other  matters  falling  within  the  sphere  of  the  appropriate  duties  of  the 
standing  Committee  on  Public  Expenditures  have  received  considerable  atten- 
tion from  the  committee,  and  should  have  much  more. 

In  conclusion,  the  committee  desire  to  say  that,  in  prosecuting  their  investiga- 
tion in  New  York,  they  uniformly  experienced  the  utmost  courtesy  and  every 
needed  co-operation  from  all  the  custom-house  officials  and  employes  with  whom 
they  were  brought  in  contact.  The  committee  early  learned  that  a  very  minute 
and  thorough  investigation  had  been  instituted  by  the  Treasury  Department, 
having  in  view  a  rigorous  retrenchment  and  reform  of  abuses,  and,  if  practicable, 
somewhat  of  a  reduction  of  the  paid  staff  of  the  revenue  force.  This  treasury 
examination,  though  not  completed,  it  is  understood  has  already  resulted  in  a 
large  number  of  dismissals.  The  evidence  taken  and  the  reports  prepared  by  those 
having  this  investigation  in  charge  were  freely  tendered  to  the  use  of  the  com- 
mittee. However,  with  all  these  aids  and  facilities,  with  the  limited  time  at 
their  disposal,  the  committee  have  not  been  able  to  thoroughly  examine  the 
somewhat  complex  working  of  the  departments  and  divisions,  and  large  forces 
intrusted  with  important  interests  connected  therewith,  to  the  extent  as  at  one 
time  they  hoped,  in  conjunction  with  the  Treasury  Department,  to  be  prepared 
at  this  session  to  recommend  such  legislation  as  would  insure  a  more  economical 
and  more  efficient  general  system  for  collecting  and  securing  the  public  revenue 
at  the  port  of  New  York. 


Digitized  by  the  Internet  Archive 
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JOURNAL 

OF  THE 

COMMITTEE  0(N  PUBLIC  EXPENDITURES. 


CONGRESS  OF  THE  UNITED  STATES. 

In  the  House  of  Representatives, 

January  11,  1864. 

On  motion  of  Mr.  Fenton, 
Resolved,  That  the  charges  recently  made  of  official  misconduct  in  the  New 
York  custom-house  in  regard  to  the  alleged  shipment  of  contraband  goods  and 
supplies,  and  all  matters  of  alleged  misconduct  in  the  management  of  the  affairs 
of  the  custom-house  at  New  York,  be  referred  to  the  Committee  on  Public  Ex- 
penditures. 

The  following  are  the  names  of  the  members  of  the  Committee  on  Public 
Expenditures :  Calvin  T.  Hulburd,  John  M.  Broomall,  Francis  C.  Le  Blond, 
A.  W.  Hubbard,  Jesse  Lazear,  Jacob  B.  Blair,  Edward  H.  Rollins,  Andrew  J. 
Rogers,  Charles  M.  Harris. 

Washington,  January  21,  1864. 
Under  the  resolution  of  the  House  of  Representatives,  of  which  the  foregoing 
is  a  copy,  the  committee  met  in  their  committee-room  at  the  Capitol  at  ten 
o'clock  a.  m. 

Present :  Mr.  Hulburd,  chairman,  and  Messrs.  Broomall,  Le  Blond,  Lazear, 
Blair,  and  Rollins. 
On  motion, 

Ordered,  That  the  chairman  be  requested  to  present  the  following  resolution 
to  the  House  : 

Resolved,  That  the  Committee  on  Public  Expenditures  be,  and  they  are 
hereby,  authorized  to  employ  a  stenographer  while  conducting  the  investigation 
ordered  by  this  house,  at  the  usual  price  paid  for  reporting  for  the  Daily  Globe  ; 
and  that  the  committee  have  leave  to  sit  during  the  sessions  of  the  House. 

The  committee  examined  as  a  witness  Hiram  Barney,  collector  of  the  port 
of  New  York. 

The  committee  adjourned  until  to-morrow  morning  at  10  o'clock. 

Washington,  January  22,  1S64. 
The  committee  met  pursuant  to  adjournment. 

Present :  Mr.  Hulburd,  chairman,  and  Messrs.  Broomall,  Le  Blond,  Lazear, 
Blair,  and  Rollins. 
On  motion, 

Ordered,  That  Theodore  F.  Andrews  be  appointed  stenographer  to  the  com- 
mittee. 

George  W.  Embree  was  examined  as  a  witness. 

The  committee  adjourned  until  Tuesday,  January  26,  1864,  at  10  o'clock  a.  m. 


12 


NEW  YORK  CUSTOM  HOUSE. 


WASHINGTON,  January  26,  1864. 
The  committee  met  pursuant  to  adjournment. 

Present :  Mr.  Hulburd,  chairman,  and  Messrs.  Broomall,  Le  Blond,  Lazear, 
Blair,  Rollins,  and  Harris. 

J.  F.  Bailey  was  examined  as  a  witness. 

The  committee  adjourned  until  to-morrow  at  half  past  ten  o'clock. 

Washington,  January  27,  1864. 
The  committee  met  pursuant  to  adjournment. 

Present :  Mr.  Hulburd,  chairman,  and  Messrs.  Le  Blond,  Hubbard,  Lazear, 
Rollins,  and  Harris. 

George  Den  is  on  was  examined  as  a  witness. 

The  committee  adjourned  until  to-morrow  morning  at  ten  o'clock. 

Washington,  January  28,  1864. 
The  committee  met  pursuant  to  adjournment. 

Present :  Mr.  Hulburd,  chairman,  and  Messrs.  Broomall,  Le  Blond,  Hubbard, 
Lazear,  Blair,  and  Rollins. 

George  Denison  and  William  C.  H.  Waddell  were  examined  as  witnesses. 
The  committee  adjourned  until  to-morrow  morning  at  half  past  eleven  o'clock. 

Washington,  January  29,  1864. 
The  committee  met  pursuant  to  adjournment. 

Present :  Mr.  Hulburd,  chairman,  and  Messrs.  Broomall,  Le  Blond,  Hubbard, 
Lazear,  and  Rollins. 

The  committee  adjourned  until  10  o'clock,  Tuesday  morning,  February  2. 

Washington,  February  2,  1864. 
The  committee  met  pursuant  to  adjournment. 

Present :  Mr.  Hulburd,  chairman,  and  Messrs.  Broomall,  Le  Blond,  Lazear, 
Rollins,  and  Blair. 

Albert  Hanscom  was  examined  as  a  witness. 

The  committee  adjourned  until  Friday  next,  February  5,  at  10  o'clock  a.  m. 

Washington,  February  5,  1864. 
The  committee  met  pursuant  to  adjournment. 

Present:  Mr.  Hulburd,  chairman,  and  Messrs.  Broomall,  Le  Blond,  Hubbard, 
Lazear,  Blair,  and  Rollins. 

Mr.  Le  Blond  offered  the  following  resolution ;  which  was  unanimously 
agreed  to  : 

Resolved,  That  a  sub-committee  of  three,  consisting  of  the  chairman  and  two 
members,  be  appointed  by  the  committee,  whose  duty  it  shall  be  to  go  to  New 
York  whenever  deemed  expedient,  and  continue  this  examination  on  behalf  of 
the  entire  committee,  to  whom  they  shall  make  their  report  on  their  return  ;  and 
that  the  chairman  of  the  committee  be  instructed  to  ask  leave  of  the  House  to 
hold  sessions  of  the  committee  in  New  York. 

The  committee  adjourned  to  meet  upon  the  call  of  the  chairman. 

Washington,  February  19,  1864. 
The  committee  met  on  call  of  the  chairman. 

Present :  Mr.  Hulburd,  chairman,  and  Messrs.  Broomall,  Le  Blond,  Hubbard, 
Lazear,  Blair,  and  Rollins. 


NEW  YORK  CUSTOM  HOUSE. 


13 


On  motion, 

Ordered,  That  the  chairman  designate  the  members  of  the  committee  who 
are  to  accompany  him  to  New  York,  under  the  resolution  of  the  committee  of 
the  5th  instant. 

The  chairman  thereupon  appointed  Mr.  Rollins  and  Mr.  Le  Blond. 
The  committee  thereupon  adjourned  to  meet  at  New  York  on  the  29th  day  of 
February  instant. 

New  York,  February  29,  1864. 
The  committee  met  pursuant  to  adjournment. 

Present :  Mr.  Hulburd,  chairman,  and  Mr.  Le  Blond  and  Mr.  Rollins. 
Alexander  Isaacs,  De  Witt  C.  Graham,  Louis  J.  Kirk,  and  James  C.  Lowbcr 
were  examined  as  witnesses. 

The  committee  adjourned  until  to-morrow  morning. 

New  York,  March  1,  1864. 
The  committee  met  pursuant  to  adjournment,  at  74  Wall  street. 
Present :  Mr.  Hulburd,  chairman,  and  Messrs.  Rollins  and  Le  Blond. 
James  B.  Archer  examined  as  a  witness,  Alexander  Isaacs  and  De  Witt  0. 
Graham  recalled  and  examined,  and  A.  Hamilton  Pride  examined  as  a  witness. 
The  committee  adjourned  till  to-morrow  morning. 

New  York,  March  2,  1864. 
The  committee  met  pursuant  to  adjournment,  at  74  Wall  street,  at  10 
o'clock  a.  m. 

Present :  Mr.  Hulburd,  chairman,  and  Messrs.  Rollins  and  Le  Blond. 
Thomas  J.  Brown,  Gustavus  Centan,  Lucas  Thompson,  Charles  C.  Centan, 
Morris  Lober,  and  George  D.  Pitkin  were  sworn  and  examined  as  witnesses. 
The  committee  then  adjourned  till  to-morrow  morning  at  10  o'clock  a.  m. 

New  York,  March  3,  1S64. 

The  committee  met  pursuant  to  adjournment. 

Present :  Mr.  Hulburd,  chairman,  and  Messrs.  Rollins  and  Le  Blond. 
The  following  witnesses  were  examined :  J.  C.  Colbern,  John  G.  Seeley, 
and  Hiram  Barney  recalled. 

The  committee  then  adjourned  until  to-morrow  morning  at  10  o'clock  a.  m. 

New  York,  March  4,  1864. 

The  committee  met  pursuant  to  adjournment. 

Present :  Mr.  Hulburd,  chairman,  and  Messrs.  Rollins  and  Le  Blond. 
The  following  witnesses  were  examined  :  B.  F.  Mudgett,  Alfred  T.  Conklin, 
Henry  C.  Smith,  J.  E.  Bailey  recalled,  and  Thomas  D.  Middleton. 
The  committee  then  adjourned  till  to-morrow  morning  at  10.}  a.  m. 

New  Y/ork,  March  5,  1864. 
The  committee  met  pursuant  to  adjournment,  at  10  J  a.  in.,  at  74  Wall  street. 
Present :  Mr.  Hulburd,  chairman,  and  Mr.  Le  Blond. 
Mr.  Barney  was  recalled  and  examined. 

The  committee  adjourned  until  AVednesday,  the  16th  of  March. 

New  York,  March  16,  1S64. 
The  committee  met  pursuant  to  adjournment,  at  10  o'clock  a.  m.,  at  No.  74 
Wall  street. 

Present :  E.  H.  Rollins  and  Mr.  Le  Blond. 
No  witnesses  were  examined. 

The  committee  adjourned  till  to-morrow  morning  at  10  o'clock  a.  m. 


14 


NEW  YORK  CUSTOM  HOUSE. 


New  York,  March  17,  1864. 
The  committee  met  pursuant  to  adjournment,  at  10  o'clock  a.  m.,  at  No.  74 
Wall  street. 

Present :  Mr.  Hulburd,  chairman,  and  Mr.  Le  Blond  and  Mr.  Rollins. 
The  following  -witnesses  were  examined :  Francis  T.  Martell,  William  E. 
Darrell,  and  Samuel  S.  J.  Frith. 

The  committee  adjourned  till  to-morrow  morning  at  10  o'clock  a.  m. 

New  Ytork,  March  IS,  1S64. 

The  committee  met  pursuant  to  adjournment,  at  10  o'clock  a.  m. 

Present :  Mr.  Hulburd,  chairman,  and  Mr.  Rollins  and  Mr.  Le  Blond. 

The  following  witnesses  were  examined :  David  B.  Turner,  William  A. 
Smalley,  Edward  GifFord,  and  David  Peterson. 

The  committee  then  adjourned  to  meet  at  Fort  Lafayette  the  following  morn- 
ing at  10  o'clock. 

Fort  Lafayette,  March  19,  1864. 

The  committee  met  pursuant  to  adjournment,  at  Fort  Lafayette. 

Present :  Mr.  Hulburd,  chairman,  and  Mr.  Rollins  and  Mr.  Le  Blond. 

The  following  witnesses  were  examined :  Albert  M.  Palmer,  Joseph  Evens, 
and  John  0.  Rehming. 

The  committee  then  adjourned  to  meet  Monday  morning,  March  21,  at  74 
Wall  street. 

74  Wall  Street,  March  21,  1864. 
The  committee  met  pursuant  to  adjournment,  at  10  o'clock  a.  m. 
Present  :  Mr.  Hulburd,  chairman,  and  Mr.  Rollins  and  Mr.  Le  Blond. 
The  following  Avitnesses  were  examined :  Mr.  Hanscom,  recalled,  Isaac  P. 
Hussey,  David  Ogden,  and  Mr.  Oonklin,  recalled. 

The  committee  then  adjourned  till  to-morrow  morning  at  10  o'clock. 

t  74  Wall  Street,  March  22,  1864. 

The  committee  met  pursuant  to  adjournment,  at  10  o'clock  a.  m. 
Present :  Messrs.  Hulburd,  chairman,  and  Rollins  and  Le  Blond. 
Mr.  H.  B.  Stanton  was  examined  as  a  witness. 

The  committee  then  adjourned  till  to-morrow  morning  at  10  o'clock  a.  m. 

74  Wall  Street,  March  23,  1864. 
The  committee  met  pursuant  to  adjournment,  at  10  o'clock  a.  m. 
Present :  Messrs.  Hulburd,  chairman,  Rollins  and  Le  Blond. 
The  following  witnesses  were  examined :  J.  T.  Jernegan  and  H.  B.  Stanton, 
recalled. 

The  committee  adjourned  till  to-morrow  morning  at  10  o'clock. 

74  Wall  Street,  March  24,  1S64. 
The  committee  met  pursuant  to  adjournment. 
Present :  Messrs.  Rollins  and  Le  Blond. 
Mr.  H.  B.  Stanton  recalled  and  examined. 

The  committee  adjourned  to  meet  at  10  o'clock  to-morrow  morning. 

74  Wall  Street,  March  25,  1S64. 
The  committee  met  pursuant  to  adjournment. 
Present :  Messrs.  Rollins  and  Le  Blond. 


NEW  YORK  CUSTOM  HOUSE. 


15 


Michael  Donohue,  James  Donohue,  William  Stewart,  and  James  Smith  were 
examined  as  witnesses. 

The  committee  adjourned  to  meet  at  New  York  on  the  call  of  the  chairman. 

74  Wall  Street,  April  7,  1S64. 
The  committee  met  at  74  Wall  Street,  at  10  o'clock  a.  m. 
The  chairman,  Mr.  Hulburd,  present. 
Charles  P.  Shaw  was  examined  as  a  witness. 
The  committee  then  adjourned  till  April  S,  at  1 0  o'clock  a.  m. 

74  Wall  Street,  April  S,  1S64. 
The  committee  met  pursuant  to  adjournment,  at  10  o'clock  a.  m. 
The  chairman,  Mr.  Hulburd,  present. 

Thomas  D.  Middleton  and  Alfred  T.  Conklin  recalled  and  examined. 
The  committee  then  adjourned  till  to-morrow  morning  at  10  o'clock  a.  m. 

74  Wall  Street,  April  9,  1S64. 
The  committee  met  pursuant  to  adjournment. 
The  chairman,  Mr.  Hulburd,  present. 
No  witnesses  were  examined. 

Adjourned  till  Monday  morning  at  10  o'clock  a.  m. 

74  Wall  Street,  April  11,  1S64. 
The  committee  met  pursuant  to  adjournment. 
Present :  Mr.  Hulburd,  chairman,  and  Mr.  Le  Blond. 
F.  J.  Phillips  and  James  W.  Ward  sworn. 

The  committee  then  adjourned  till  to-morrow  morning  at  10  o'clock  a.  m. 

74  Wall  Street,  April  12,  1SG4. 
•  The  committee  met  pursuant  to  adjournment. 
Present :  Mr.  Hulburd,  chairman,  and  Mr.  Le  Blond. 

The  following  witnesses  were  examined  :  Isaac  P.  Hussey,  recalled ;  Ezra  P. 
Cuyler  and  Lewis  Benjamin  sworn. 

~  The  committee  then  adjourned  till  to-morrow  morning  at  10  o'clock  a.  m. 

74  Wall  Street,  April  13,  1S64. 

The  committee  met  pursuant  to  adjournment. 
Present :  Mr.  Hulburd,  chairman,  and  Mr.  Le  Blond. 

The  following  witnesses  were  examined  :  James  Kent  Boyd  and  Patrick  W 
Derham. 

The  committee  then  adjourned  to  meet  to-morrow  morning  at  10  o'clock  a.  m. 

74  Wall  Street  April  14,  1S64. 
The  committee  met  pursuant  to  adjournment. 
Present  :  Mr.  Hulburd,  chairman,  and  Mr.  Le  Blond. 
No  witnesses  were  examined. 

The  committee  then  adjourned  till  to-morrow  morning  at  10  o'clock  a.  m. 

i 

74  Wall  Street,  April  15,  1S64. 
The  committee  met  pursuant  to  adjournment. 
Present :  Mr.  Hulburd,  chairman,  and  Mr.  Le  Blond. 
No  witnesses  were  examined. 

The  committee  then  adjourned  till  to-morrow  morning  at  10  o'clock  a.  m. 


16 


NEW  YORK  CUSTOM  HOUSE. 


74  Wall  Street,  April  16,  1S64. 
The  committee  met  pursuant  to  adjournment. 
Present :  Mr.  Hulburd,  chairman,  and  Mr.  Le  Blond. 
Ephraim  Morris  was  examined  as  a  witness. 

The  committee  then  adjourned  till  Monday  morning,  April  18,  at  10  o'clock  a.  m 

74  Wall  Street,  April  18,  1864. 
The  committee  met  pursuant  to  adjournment. 
Present :  Mr.  Hulburd,  chairman,  and  Mr.  Le  Blond. 

D.  Cady  Stanton,  Peter  H.  Morris,  and  Samuel  Myers  were  examined  as 
witnesses. 

The  committee  then  adjourned  till  to-morrow  morning  at  10  o'clock  a.  m. 

April  19,  1S64. 

The  committee  met  pursuant  to  adjournment. 

Present :  Mr.  Hulburd,  chairman  and  Mr.  Le  Blond. 

John  J.  Rickley  and  Win.  B.  Brooks  were  examined  as  winesses. 

The  committee  then  adjourned  till  to-morrow  morning  at  10  o'clock  a.  m. 

April  20,  1864. 

The  committee  met  pursuant  to  adjournment. 
Present :  Mr.  Hulburd,  chairman,  and  Mr.  Le  Blond. 

Jonathan  Sturges,  A.  T.  Stewart,  Henry  Dater,  and  Christian  Dietrich  ex- 
amined as  witnesses. 

The  committee  then  adjourned  till  to-morrow  morning  at  10  o'clock. 

74  Wall  Street,  April  21. 

The  committee  met  pursuant  to  adjournment. 
The  chairman,  Mr.  Hulburd,  and  Mr.  Le  Blond,  present. 
Christian  Dietrich,  recalled,  and  Sigismund  Kaufman,  examined  as  a  witness, 
and  Samuel  Hirsch. 

The  committee  then  adjourned  till  to-morrow  at  10  o'clock  a.  m. 

74  Wall  Street,  April  22. 

The  committee  met  pursuant  to  adjournment. 

Mr.  Le  Blond,  present. 

James  Hynes  examined  as  a  witness. 

The  committee  then  adjourned  till  to-morrow  at  10  o'clock  a.  m. 

74  Wall  Street,  April  23. 

The  committee  met  pursuant  to  adjournment. 

Mr.  Le  Blond,  present. 

Epos  Sargent  was  examined  as  a  witness. 

The  committee  then  adjourned,  subject  to  the  call  of  the  chairman. 


NEW  YORK  CUSTOM  HOUSE. 


17 


TESTIMONY. 


Testimony  of  Hiram  Barney. 

Washington,  Thursday,  January  21,  1864. 
Hiram  Barney,  a  witness,  was  duly  sworn  and  examined  as  follows  : 

Questions  by  the  chairman : 
Question.  Are  you  the  collector  of  the  port  of  New  York  ? 
Answer.  I  am. 

Question.  When  did  you  enter  upon  the  duties  of  that  office? 
Answer.  On  the  8th  of  April,  1861. 
Question.  You  have  several  deputies  ? 

Answer.  I  have  one  assistant  collector  and  eight  deputies,  an  auditor,  and  a 
cashier.  I  mention  these  because  they  are  all,  with  the  exception  of  the  ass  is;- 
ant  collector,  heads  of  divisions. 

Question.  Have  there  been  any  changes  in  these  deputies  since  you  entered 
upon  the  duties  of  your  office  ? 

Answer.  Yes,  sir. 

Question.  Do  you  recollect  who  occupied  those  offices  when  you  came  in, 
and  who  are  there  now  1 

Answer.  There  were  seven  deputy  collectors  when  I  went  there.  Their 
names  were  Charles  P.  Clinch,  Michael  Hoffman,  Henry  A.  Cargill,  Legrand 
G.  Capers,  Samuel  S.  Bowne,  Charles  D.  Meade,  and  Joseph  White. 

Question.  Has  there  since  been  an  increase  of  one? 

Answer.  Yes,  sir ;  and  one  deputy  collector,  Mr.  Clinch,  has  been  made  an 
assistant  collector. 

Question.  I  mean  to  ask  whether  there  has  been  any  changes  in  the  persons 
holding  the  offices. 

Answer.  Yes,  sir.  Every  deputy  collector  now  there  has  been  appointed  by 
me.  Those  now  in  office  are  B.  F.  Mudgett,  Hamilton  Bruce,  George  W.  Em- 
bree,  Jeremiah  H.  Stedwell,  Henry  Calhoun,  A.  B.  Olmstead,  Albert  Hanscom, 
and  C.  A.  Runkle.  The  printed  paper  which  I  now  hand  you,  marked  A,  is  a 
statement  of  the  organization  and  assignment  of  duties  in  the  collector's  office 
at  the  custom  house,  New  York,  with  regulations  in  regard  to  the  transaction  of 
business  there ;  also  a  written  statement,  marked  B,  referring  to  certain  super- 
visory duties  and  agencies  assigned  by  law  to  the  collector. 

EXHIBIT  A. 

Organization  and  assignment  of  duties  in  the  collector's  office,  custom-lious< . 

New  York. 

FIRST  DIVISION. 

The  auditor's  department. — Accounting  with  the  treasury ;  disbursements  ;  return  of  duties 
and  excess  of  deposits ;  payment  of  drawbacks ;  liquidation  of  consumption  entries  and 
adjustment  of  damages;  statistics  of  imports,  exports,  tonnage,  and  passengers;  archives 
and  records ;  correspondence  relating  to  the  business  of  this  division. 

S.  G.  Ogden,  auditor;  John  W.  Hunter,  assistant;  Edmund  M.  Evans,  chief  liqui- 
dating clerk. 

SECOND  DIVISION. 

The  cashiers  drjiartntcnt. — The  collection  of  duties  and  fees. 
William  D.  Robinson,  cashier;  James  Hoffman,  assistant  cashier. 


H.  Rep.  Com.  Ill  2 


18 


NEW  YORK  CUSTOM  HOUSE. 


THIRD  DIVISION. 

The  department  of  the  storekeeper  of  the  port. — The  superintendence  of  all  warehouse  busi- 
ness;  warehoused  and  unclaimed  goods;  the  private  and  public  warehouses ;  and  all  the 
correspondence  growing  out  of  or  connected  with  the  same;  the  superintendence  of  the  col- 
lector's clerks  at  the  appraisers'  stores,  and  the  curreut  business  of  the  office. 

J.  H.  Stedwell,  deputy  collector  in  charge;  Jeremiah  Lothrop,  chief  clerk  ;  D.  G.  Lobdell, 
warehouse  superintendent. 

FOURTH  DIVISION. 

All  business  connected  with  the  entrance  and  clearance  of  vessels ;  the  registry,  enrolling, 
and  licensing  of  vessels  ;  granting  protections  to  seamen ;  recording  bills  of  sale  and  mort- 
gages of  vessels ;  the  examination  and  comparison  of  manifests  with  officers'  returns ;  and 
all  correspondence  growing  out  of  or  connected  therewith,  and  the  current  business  of  the 
office. 

George  W.  Ernbree,  deputy  collector  in  charge ;  S.  S.  Norton,  chief  clerk. 

FIFTH  DIVISION. 

The  control  and  direction  of  the  business  of  all  the  entry  clerks,  bond  clerks,  and  amend- 
ment clerks,  other  than  those  in  the  warehouse  department ;  fixing  rates  of  duty ;  and  all 
other  questions  arising  out  of  entries  for,  and  landing  goods  for,  consumption  ;  and  the  exclu- 
sive direction  of  the  issue  of  "free  permits,"  so  called;  and  the  current  business  of  the  office. 

B.  F.  Mudgett,  deputy  collector  in  charge ;  E.  D.  Ogden,  chief  clerk. 

SIXTH  DIVISION. 

The  control  and  direction  of  the  invoice  clerks,  and  the  custody  of  all  invoices,  appraise- 
ments, and  damage  certificates,  and  the  current  business  of  the  office. 
Henry  Calhoun,  deputy  collector  in  charge;  T.  D.  Knower,  chief  clerk. 

SEVENTH  DIVISION. 

The  control  and  direction  of  the  order  clerks  and  the  issue  of  delivery  orders,  and  the  cur- 
rent business  of  the  office. 
Alexander  McLeod,  deputy  collector  in  charge ;  Daniel  Jackson,  chief  clerk. 

EIGHTH  DIVISION. 

The  supervision  of  all  exports  entitled  to  drawback  of  internal  revenue  and  customs 
duties,  on  articles  manufactured  from  foreign  materials;  the  ascertaining  and  certifying  such 
duties  ;  the  taking  and  cancellation  of  required  bonds  ;  the  charge  of  all  export  entry  papers 
for  benefit  of  drawback,  and  officers'  returns  thereon,  and  of  certificates  in  proof  of  the  land- 
ing of  such  exports  abroad. 

Nelson  K.  Wheeler,  deputy  collector  in  charge ;  A.  B.  Olmstead,  chief  clerk. 

NINTH  DIVISION. 

The  care  of  all  suits  brought  against  the  collector ;  the  taking  of  all  bonds  required  by 
law  or  treasury  regulations  on  shipments  to  domestic  or  foreign  neutral  ports,  to  guard 
against  the  same  being  used  to  "give  aid  or  comfort"  or  information  to  the  insurgents. 

Cornelius  A.  Kunkle,  deputy  collector  in  charge;  W.  C.  H.  Waddell,  chief  clerk. 

TENTH  DIVISION. 

The  investigation  of  attempts  to  defraud  the  revenue ;  enforcement  of  fines,  penalties,  and 
forfeitures ;  custody  of  all  goods  seized  by  the  revenue  officers,  and  care  of  suits  instituted 
in  consequence  thereof ;  prosecution  of  all  bonds,  the  conditions  whereof  have  been  violated ; 
and  the  receipt,  examination,  custody,  and  cancellation  of  bonds  taken  in  the  ninth  division, 
after  the  same  are  perfected. 

Albert  Hanscom,  deputy  collector  in  charge ;  F.  A.  Durivage,  chief  clerk. 

ASSISTANT  COLLECTOR,  CHARLES  P.  CLINCH. 

Generally  the  assistant  collector  will  exercise  the  powers  devolved  by  law  upon  the  col- 
lector. He  will  have  charge  of  the  correspondence  connected  with  the  business  of  the  fifth, 
sixth,  and  seventh  divisions,  and  supervise  all  other  official  correspondence  of  the  office.  He 
will  supervise  the  organization  of  the  several  departments  of  business,  and  will  hear  and 
decide  all  questions  that  arise  within  the  scope  of  these  duties  and  responsibilities ;  and  par- 
ticularly all  questions  relating  to  rates  of  duties,  damage,  penalties,  and  forfeitures;  and 
have  the  custody  of  the  records  of  official  correspondence ;  to  which  bureau  is  attached 
Joseph  Treloar,  chief  clerk ;  Benjamin  C.  Bachman,  assistant ;  F.  J.  Phillips,  assistant. 


NEW  YORK  CUSTOM  HOUSE. 


19 


Regulations. 

1.  The  heads  of  the  several  divisions  will  entertain  and  decide  all  questions  which  may 
arise  in  respect  to  matters  belonging  to  their  respective  bureaus. 

2.  Appeals  from  their  decisions  may  be  made  to  the  assistant  collector,  or  may  be  sub- 
mitted in  writing  for  the  consideration  of  the  collector. 

3.  Reports  must  be  made  daily  by  the  heads  of  divisions  on  the  current  business,  and  of 
the  decisions  made  by  them,  if  any  incident  of  importance  shall  have  occurred  in  such 
proceedings. 

4.  The  collector  will  hold  consultations  every  morning  until  twelve  o'clock  with  the 
heads  of  divisions  upon  their  reports  and  upon  appeals  from  their  decisions,  and  with  the 
heads  of  other  departments  of  the  customs. 

f>.  Visitors  on  public  business  will  be  received  from  twelve  to  two  o'clock.  From  two  to 
four  o'clock  the  collector  will  be  engaged  in  the  examination  and  signing  of  official  letters 
and  documents. 

6.  The  assistant  collector  will  distribute  the  official  letters  to  the  appropriate  heads  of  divi- 
sions for  attention  and  answer. 

7.  All  letters  prepared  by  the  heads  of  the  several  divisions  for  the  collector  must  be  pre- 
sented to  the  assistant  collector  for  his  perusal  and  check  before  being  submitted  to  the  col- 
lector for  his  approval  and  signature. 

HIRAM  BARNEY,  Collector. 


EXHIBIT  B. 

The  collector  of  the  district  of  the  city  of  New  York  is  charged  by  law,  ex  officio,  with  the 
further  functions  of  superintendent  of  lights. 

Inspector  of  light-house,  Commodore  L.  M.  Powell,  United  States  navy;  office  No.  19 
Cedar  street. 

Agent  of  United  States  Marine  Hospital,  Theodoras  Van  Tine,  sub-agent ;  office  in  the 
sub-basement  of  the  custom-house,  Hanover  street. 

Agent  of  the  United  States  revenue  marine,  service,  and  material,  T.  B.  Stillman,  super- 
vising inspector;  office  No.  23  Pine  street. 

Agent  for  receipt  and  disposal  of  captured  and  abandoned  property  transported  from  in- 
surrectionary districts,  Francis  Robinson,  chief  clerk,  (1st  division.) 

Question.  The  resolution  of  the  House  refers  to  this  committee  the  charges 
recently  majde  of  official  misconduct  in  the  New  York  custom-house  in  regard 
to  the  alleged  shipments  of  contraband  goods  and  supplies,  and  all  matters  of 
alleged  misconduct  in  the  management  of  the  affairs  in  that  custom-house.  The 
committee  propose  to  direct  their  inquiries  with  reference  to  this  specific  matter. 
lrou  will  please  go  on  and  state  to  the  committee  what  bureau  or  division  has 
charge  of  that  matter,  who  the  present  officer  there  is,  and  then,  if  you  can, 
give  us  any  information  in  your  possession  in  reference  to  those  general  charges 
made  against  the  custom-house,  limited  to  that  bureau. 

Answer.  The  ninth  division  has  charge  of  the  business  concerning  which  the 
inquiry  is  made.  Mr.  Henry  13.  Stanton  was  the  deputy  in  charge  of  that 
division  until  October,  1863,  when  Mr.  A.  Hanscom  wras  put  in  charge  of  it  ; 
and  in  December  Mr.  0.  A.  Runkle  was  appointed  deputy  in  place  of  Mr. 
Stanton,  who  had  resigned. 

When  a  vessel  is  loaded  the  master  or  owner  presents  to  Mr.  Embree,  the 
clearance  deputy,  a  manifest,  showing  the  name  of  the  vessel,  and  of  the  own- 
ers and  master,  the  place  of  destination,  and  a  list  of  the  cargo,  with  the  quan- 
tity, value,  and  owner  of  each  shipment,  and  makes  oath  to  it.  If  the  vessel 
is  destined  to  a  port  contiguous  to,  and  in  direct  commercial  intercourse  with, 
ports  or  places  in  insurrection  against  the  government  of  the  United  States, 
and  if  there  is  reason  to  believe  that  the  goods  shipped  may  be  used  to  give  aid 
or  comfort  to  the  enemies  of  the  United  States,  Mr.  Embree  refuses  t<»  clear  the 
vessel  unless  bonds  are  given  in  amount  equal  in  value  to  such  cargo,  condi- 
tioned "  that  said  cargo  shall  be  delivered  at  the  destination  for  which  it  is 
cleared  or  permitted,  and  that  no  part  thereof  shall  be  used  in  ait',  a  ding  aid  or 


20 


NEW  YORK  CUSTOM  HOUSE, 


comfort  to  any  person  or  parties  in  insurrection  against  the  authorities  of  the 
I  cited  States,  with  the  knowledge  or  consent  or  connivance  of  the  owner  or 
shipper  thereof,  or  with  the  knowledge,  consent,  or  connivance  of  the  master  of 
the  vessel  on  which  the  same  may  be  laden,  or  of  other  persons  having  control 
of  the  same,"  &c. 

The  master  or  owner  of  the  vessel  presents  to  the  deputy  collector  having 
charge  of  the  preparation  of  the  bonds  the  manifest  on  which  Mr.  Embree  has 
indicated  the  goods  to  be  bonded,  and  he  prepares  the  bonds  in  accordance  with 
law  and  the  inst ructions  of  the  Secretary  of  the  Treasury.  Then  the  mani- 
fest, or  list  of  articles  shipped,  is  returned,  marked  by  the  deputy  collector 
taking  the  bond,  indicating  that  the  proper  bond  has  been  taken,  and  then  the 
vessel  is  cleared  by  the  clearance  deputy. 

Complaints  have  been  made  constantly  by  merchants  against  these  restrictions 
upon  trade — by  British  subjects  to  the  British  consul  at  New  York  and  to  the 
British  minister  at  Washington,  and  by  American  citizens  to  the  Secretary  of 
the  Treasury.  I  have  been  very  frequently  required  to  answer  these  com- 
plaints by  full  reports  of  the  facts  in  justification  of  the  proceedings  of  the 
custom-house  authorities.  Some  of  these  reports  appear  in  the  volumes  of 
diplomatic  correspondence  published  by  the  State  Department. 

Changes  and  modifications  from  time  to  time  have  been  made  in  the  require- 
ments and  in  the  form  of  the  bonds  by  the  concurrence  of  the  Secretary  of  the 
Treasury  or  by  his  direction. 

I  should  remark  that  this  is  entirely  a  new  business  in  the  custom-house,  grow- 
ing, as  have  many  other  kinds  of  business  there,  out  of  the  peculiarities  of  the  times. 
The  deputy  collectors,  Mr.  Embree  and  Mr.  Stanton,  who  have  had  the  imme- 
diate charge  of  this  business,  always  manifested  great  vigilance  and  care  to 
have  it  done  in  accordance  with  the  letter  and  spirit  of  the  law  and  instructions 
by  which  I  was  governed.  And  whenever  a  case  or  question  arose  involving 
doubt  as  to  what  would  be  the  proper  course  to  be  taken,  they  would  come  to 
me  with  a  statement  of  such  case  or  question,  and  of  the  law  and  instructions 
bearing  upon  it.  So  that  I  had  no  doubt  but  that  the  business  was  well  at- 
tended to. 

Persons  doing  business  with  the  custom-house,  and  attending  tp  their  own 
interests,  are  very  apt  to  complain  when  they  do  not  meet  with  the  accommo- 
dation which  their  interests  require. 

It  is  to  be  remarked  in  this  connexion  that  with  all  those  ports  where  there 
is  a  contraband  trade  with  the  insurgent  States  there  is  also,  as  there  always 
has  been,  a  legitimate  trade  between  regular  merchants  at  those  ports  and  in 
New  York.  Ship-owners  who  send  their  vessels,  as  aforetime,  to  those  ports, 
take  such  goods  as  are  offered,  provided  the  custom-house  will  clear  them. 

Almost  every  vessel  clearing  has  on  board  some  goods  which  are  entitled  to 
clear  at  once  without  bond,  as  they  are  evidently  going  to  supply  a  legitimate 
demand  for  consumption  or  trade  at  the  port  or  destination.  Generally,  how- 
ever, vessels  loaded  for  ports  to  and  from  which  blockade-runners  go,  contain 
as  a  portion  of  their  cargo — sometimes,  perhaps,  the  whole  of  it — goods  which 
are  wanted  by  the  insurgents,  and  are  likely  to  go  to  them.  These  are  bonded. 
Those  engaged  in  a  legitimate  trade  have,  therefore,  to  suffer  delays  and  incon- 
veniences in  consequence  of  these  restrictions,  which  are  imposed  to  restrain 
and  prevent  a  trade  which  contributes  to  the  aid  and  comfort  of  the  enemy. 

You  will  understand  that  all  these  circumstances  complicate  all  this  business 
of  taking  bonds. 

As  to. the  discovery  of  certain  irregularities  in  Mr.  Stanton's  bureau,  it  oc- 
curred in  this  wise  :  Some  time  last  summer  a  person  whose  character  had  been 
a  subject  of  remark  to  me  as  suspicious,  and  against  whom  I  was  cautioned, 
called  upon  me  and  said  that  there  was  something  wrong  in  the  bonding  of 
goods  and  in  the  cancellation  of  bonds  in  Mr.  Stanton's  division,  and  if  I  would 


NEW  YORK  CUSTOM  HOUSE. 


21 


do  certain  things,  and  if  I  would  do  something  in  the  way  of  appointing  an 
agent,  he  would  do  so  and  so.  I  do  not  now  recollect  precisely  what  the  pro- 
position was,  but  I  do  recollect  that  I  considered  it  inadmissible.  He  said  he 
would  find  out  some  things  which  were  wrong — that  money  had  been  used.  I 
called  in  Mr.  Hanscom,  and  requested  him  to  examine  the  statements  and  pro- 
positions and  see  what  they  amounted  to,  and  if  he  thought  favorably  of  them 
to  report  to  me.  He  afterwards  reported  that  he  had  some  conversation  with 
the  man,  but  that  he  thought  it  was  not  worth  while  to  accede  to  his  propositions. 
But  nevertheless  Mr.  Hanscom  continued  to  talk  with  him  in  the  hope  of  find- 
ing out  something  of  advantage  to  the  government.  With  what  passed  subse- 
quently in  connexion  with  this  man  I  am  not  definitely  enough  acquainted  to 
give  a  detailed  statement,  but  must  refer  you  to  Mr.  Hanscom. 

These  conferences  commenced  in  the  latter  part  of  August,  and  extended  five 
or  six  weeks.  During  this  time,  or  soon  afterwards,  some  apparent  hesitation 
or  unwillingness  on  the  part  of  Mr.  Stanton  to  institute  proceedings  for  the  con- 
demnation of  the  "Jose" — a  vessel  which  had  been  seized  by  the  officers  of 
the  customs — served  to  increase  the  suspicion  already  existing  of  irregularities 
and  improprieties  in  the  management  of  the  business  of  the  9th  division. 

Mr.  Jordan,  the  Solicitor  of  the  Treasury,  being  requested,  went  to  New  York, 
and  prosecuted  an  investigation  which  related  chiefly  to  the  cancelling  and  de- 
livery up  of  bonds.  I  was  not  present  at  the  investigation,  but  it  was  proven 
that  bonds  had  been  cancelled  on  insufficient  testimony,  and  that  some  had  been 
abstracted  from  the  bureau,  and  delivered  up  to  the  obligors  before  the  ship- 
ments had  arrived,  in  some  cases,  at  the  point  of  destination.  When  the  Solicitor 
had  gone  so  far  in  his  investigation  as  to  ascertain  that  bonds  had  been  ab- 
stracted from  the  bureau,  and  delivered  to  the  parties  making  them,  he  made 
a  statement  to  me  of  the  facts  which  had  been  elicited  in  his  investigation.  The 
testimony  was  to  the  effect  that  Stanton's  son  had  abstracted  and  delivered  the 
bonds  to  those  parties  for  a  consideration  in  each  case.  It  was  not  proven  that 
Mr.  Stanton  was  privy  to  this  in  any  manner,  but  strong  suspicions  were  devel- 
oped of  his  complicity  ;  moreover,  his  son  was  in  his  room  a  great  deal  of  the 
time,  and  persons  dealing  with  him  went  into  Mr.  Stanton's  room  to  see  his 
son. 

Question.  Was  Mr.  Stanton's  son  an  attache  of  the  office  ? 
Answer.  He  was  a  clerk. 
Question.  A  clerk  to  his  father? 

Answer.  He  was  a  custom-house  clerk,  and  assisted  his  father  in  writing  out 
the  blanks,  &c.  No  testimony  implicating  Mr.  Stanton  any  further  than  I  have 
mentioned  was  disclosed.  A  number  of  bonds  were  produced,  that  had  been 
delivered  up  without  the  production  of  evidence  to  justify  cancellation.  I  think 
there  were  seven  delivered  up  in  all.  I  am  speaking  entirely  from  my  recol- 
lection of  the  testimony,  which  is  in  the  possession  of  the  Solicitor  of  the  Trea- 
sury. 

On  ascertaining  that  bonds  had  been  abstracted,  I  dismissed  Mr.  Stanton 
from  the  charge  of  that  division  within  a  half  hour,  and  drew  up  the  order  di- 
recting him  to  deliver  up  all  the  papers  to  Mr.  Hanscom,  whom  I  ordered  to 
take  charge  of  his  (Stanton's)  division,  and  to  make  a  thorough  investigation 
in  regard  to  all  the  bonds,  and  to  see  if  anymore  were  missing.  I  ordered  him 
also  to  examine  the  different  bonds  with  reference  to  the  manner  in  which  they 
had  been  taken,  and  the  proofs  on  which  they  had  been  cancelled.  He  took 
possession  of  the  bureau  within  an  hour  from  the  time  the  first  communication 
was  made  to  me  by  Solicitor  Jordan  of  the  conclusion  to  which  he  had  arrived 
from  the  investigation;  and  Mr.  Stanton  has  not  had  charge  of  it  since.  I  di- 
rected Mr.  Hanscom  to  examine  every  paper  that  went  out  of  the  office,  and  to 
deliver  to  Mr.  Stanton  only  strictly  private  papers — thus  securing  an  examina- 
tion of  ihe  office  just  as  Mr.  Stanton  had  left  it. 


22 


NEW  YORK  CUSTOM  HOUSE. 


That  examination  has  been  made,  bat  no  formal  report  has  yet  been  commu- 
nicated to  me,  but  such  report  is  now  being  prepared  by  Mr.  Hanscom.  I  un- 
derstand, however,  that  the  number  of  bonds  is  about  5,000.  A  large  number 
of  them  have  been  cancelled  properly  on  the  required  consular  certificate,  and 
on  other  proper  evidence.  When  these  certificates  were  produced,  the  word 
"  cancelled"  M  as  written  on  the  bond,  unless  there  was  some  evidence  to 
justify  the  requiring  of  further  evidence.  When  there  were  suspicious  circum- 
stances, proofs  additional  to  the  consular  certificates  were  required,  that  the 
goods  had  been  properly  sold,  or  had  entered  into  consumption,  or  into  proper 
hands  at  the  port  for  which  the  vessel  was  destined  according  to  the  regula- 
tions. 

I,  of  course,  immediately  removed  young  Stanton  at  the  same  time  I  re- 
moved his  father  from  the  charge  of  his  bureau,  and  he  lias  not  been  in  the 
custom-house  since.  He  afterwards  came  with  his  mother  to  me  and  made  a 
confession  of  the  whole  matter.  His  statement  was  confirmed  by  a  cousin  of 
his,  a  very  respectable  lawyer,  who  stated  he  had  concealed  his  conduct  from 
his  father,  and  that  he  wished  him  to  conceal  it,  because  he  was  afraid  of  his 
father's  indignation.    This  son  is  about  nineteen  or  twenty  years  of  age. 

To  avoid  the  irregularities  which  have  hitherto  attended  the  taking  and  can- 
cellation of  these  bonds,  I  have  so  changed  the  arrangement  of  the  business 
that  Mr.  Deputy  Runkle,  the  successor  in  the  ninth  division  of  Mr.  Stanton, 
takes  the  bonds,  and  each  day  makes  a  list  of  the  bonds  taken,  embracing  a 
brief  description  of  each  bond,  and  on  the  same  day  delivers  the  bonds  so  taken, 
and  the  list,  to  Mr.  Deputy  Hanscom,  who  files  the  bonds  in  a  secure  place  in 
his  bureau,  after  having  carefully  examined  and  compared  them  with  the  list, 
and  on  the  day  after,  before  12  o'clock,  sends  the  list  to  me  with  his  certificate 
annexed,  that  he  has  received,  examined,  and  filed  the  bonds  described  in  the 
list.  He  also  attends  to  the  cancellation  of  the  bonds  on  presentation  to  him 
of  the  required  proofs. 

Within  the  last  few  days  it  has  been  alleged  that  Mr.  Stanton  took  an  active 
interest  in  inducing  various  persons  to  become  sureties  on  bonds,  and  I  am  also 
informed  that  an  affidavit  was  made  on  the  sixth  of  January  to  the  effect 
that  Mr.  Palmer,  a  clerk  formerly  in  the  ninth  division,  but  latterly  attached  to 
the  tenth  division,  and  sometimes  engaged  in  assisting  me  in  correspondence  in 
respect  to  appointments,  induced  the  person  making  that  affidavit  to  become 
surety  on  a  bond  given  for  a  shipment  of  goods.  1  have  also  been  informed,  I 
think  by  Mr.  Hanscom,  that  Mr.  Palmer  himself  became  surety  on  a  bond  of 
small  amount  for  a  shipment  to  Georgetown,  D.  C. 

Mr.  Palmer  was  appointed  a  clerk  of  the  customs  soon  after  my  own 
appointment.  He  was  most  respectably  introduced  to  me,  and  earnestly  re- 
commended to  my  confidence;  and  his  conduct,  so  far  as  it  came  under  my 
observation  or  knowledge,  justified  the  recommendation  upon  which  I  appointed 
him,  until  the  time  of  his  arrest,  which  occurred  on  the  7th  of  January,  during 
my  absence  for  a  few  hours  from  the  custom-house  on  official  business.  I  had 
no  other  than  official  relations  with  him,  and  knew  nothing  of  his  associations. 
So  far  as  I  could  observe  myself  or  knew  of  him,  he  performed  his  duties  faith- 
fully ;  but  since  his  arrest  I  have  heard  various  reports  and  statements,  which 
appear  to  be  entitled  to  credit,  to  the  effect  that  he  has  had  social  relations 
with  persons  engaged  in  shipments  of  goods  to  Nassau,  and  has  also  had  money 
transactions  wi ili  those  persons.  I  am  informed  that  the  evidence  in  support 
of  these  statements  was  discovered  rather  accidentally  among  the  books  and 
papers  found  in  the  safe  of  Mr.  Benjamin  by  the  officers  of  the  customs  and 
the  United  States  marshal  on  the  7th  of  January,  several  days  after  Benjamin's 
arrest  and  imprisonment.  This  evidence,  obtained  during  my  brief  absence 
from  the  office  on  that  day,  together  with  the  affidavits  ami  statements  already 
mentioned,  were  laid  before  General  Dix,  who  ordered  the  arrest  and  imprison- 


NEW  YORK  CUSTOM  HOUSE. 


23 


merit  of  Mr.  Palmer.  On  the  8th  of  January  Mr.  Palmer  was  suspended  from 
duty  and  pay  as  a  clerk  of  the  customs. 

Some  time  in  November  last  information  was  received  that  certain  person.- 
engaged  in  running  the  blockade  would  go  from  Nassau  to  New  York  by  the 
Corsica,  a  British  steamship,  running  between  Havana  and  New  York,  touch- 
ing at  Nassau,  and  that  much  valuable  information  would  be  found  upon  them. 
A  large  force  of  inspectors  boarded  the  Corsica  coming  into  port,  and  the  pas- 
sengers and  their  baggage  were  thoroughly  examined.  Evidence  was  found 
implicating  some  of  them  as  blockade-runners;  some  seizable  property,  and 
various  important  papers  were  found  on  them.  Among  these  papers  was  a  list 
of  certain  articles  which  had  been  found  upon  the  Margaret  and  Jessie,  a 
prize  vessel,  caught  in  the  act  of  running  the  blockade,  and  brought  to  New 
York  for  condemnation.  On  comparison  of  that  list  with  the  manifests  of  the 
Margaret  and  Jessie  and  of  the  Robert  E.  Lee,  a  prize  vessel,  taken  to 
Boston  for  condemnation,  and  of  other  vessels  by  which  shipments  had  been 
made  by  persons  in  New  York  to  persons  in  Nassau,  a  similarity  so  striking 
was  apparent  that  little,  if  any,  doubt  exists  that  they  are  to  a  considerable 
extent  identical  and  the  same;  and  certain  persons  at  New  York  and  Nassau 
were  shown  to  be  interested  in  the  shipment  of  those  and  other  goods  from 
Nassau  into  the  rebel  States.  These  facts  were  represented  to  the  United 
States  marshal  and  to  General  Dix,  and  some  of  the  persons  referred  to  have 
been  arrested  and  imprisoned. 

In  this  way,  and  by  a  concurrence  of  improbable  events  and  circumstances, 
we  have  obtained  the  only  evidence  we  have  yet  reached  (except,  perhaps, 
some  which  probably  may  exist  at  Matamoras)  that  tends  to  render  available 
any  of  the  five  thousand  bonds  we  have  taken  at  New  York. 

Thursday,  March  4,  1864. 
Hiram  Barney  recalled. 

By  the  chairman : 

Question.  I  will  ask  you  what  are  your  receipts  for  seizures,  commissions, 
salary,  &c,  per  year  as  derived  from  your  official  position  in  the  custom-house  ? 

Answer.  My  salary  is  $6,340  a  year,  and  this  is  all  that  I  receive  from  the 
treasury  or  the  government;  my  receipts  for  seizures,  fines,  penalties,  and  for- 
feitures, from  the  time  I  entered  upon  the  duties  of  my  office,  April  S,  1S61,  to 
the  29th  of  February,  1S64,  were  $49,  976  78.  It  may  be  proper  to  state  here 
that  this  amount  is  considerably  diminished  by  payments  for  information  and 
services  in  connexion  with  the  discovery  of  frauds  on  the  revenue.  In  one  case 
it  occurs  to  me  the  revenue  officers  paid  oift  of  their  distributive  shares  about 
$4,  000. 

I  submit  the  following  statement,  prepared,  at  my  request,  by  the  auditor  of 
the  customs.  It  embraces  a  schedule  of  the  aggregate  amounts  received  each 
month  from  fines,  penalties,  and  forfeitures,  which  are  distributed  as  set  down  : 


NEW  YORK  CUSTOM  HOUSE 


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B8SBS38B8B8B8BSBB8SS8  I  SSI  1  888SBS8 


jiiilpliijiiiiiiiijii 


NEW  YORK  CUSTOM  HOUSE. 


25 


I  now  submit  a  statement,  prepared  for  me  from  the  books  of  the  cashier  of 
commissions  received  from  State  officers  for  the  whole  period  during  which  I 
have  held  office.    The  total  amount  is  $10,875  62: 

EXHIBIT  D. 


Statement  of  all  commissions  received  at  the  cashier's  department  for  and  paid 

to  Hiram  Barney,  esq. 


Date. 

5  per  cent. 

3  per  cent. 

2|  per  cent. 

Total. 

I  1  u  I  UU1  Mill*!}  ItJl  o. 

►O  L Cll v_   11  VJo  17  1  I  tl  1  • 

18G1. 

April,  (8  to  30)  

$145  44 

$77  68 

$6/  33 

$290  45 

May  

221  04 

116  97 

97  39 

435  40 

June  

127  69 

78  03 

59  53 

265  25 

July  

164  75 

91  40 

81  35 

337  50 

119  85 

64  71 

58  Hi 

242  57 

September  

171  38 

75  57 

74  92 

321  87 

October  

189  64 

83  04 

80  17 

352  85 

November  

217  23 

95  94 

94  56 

407  73 

December  

157  49 

98  86 

85  04 

341  39 

1,514  51 

782  20 

698  30 

2,995  01 

1862. 



206  79 

98  47 

98  70 

403  96 

115  31 

65  52 

55  55 

236  3cs 

159  34 

78  58 

71  37 

309  29 

a  r*-..;  l 

128  58 

76  72 

61  96 

267  26 

139  00 

91  15 

73  03 

303  18 

129  93 

86  53 

65  54 

282  00 

185  57 

108  09 

87  00 

.Hi  06 

148  95 

94  65 

76  18 

319  78 

212  09 

102  51 

94  55 

409  15 

200  91 

105  79 

86  86 

393  56 

November  

157  61 

71  36 

70  85 

299  82 

December  

172  83 

83  85 

73  76 

330  44 

1.956  91 

1,063  22 

915  35 

3,935  48 

1863. 

177  90 

80  14 

72  05 

330  09 

February  

103  07 

54  99 

46  18 

204  24 

March  

144  17 

71  95 

53  02 

269  14 

160  06 

82  00 

59  73 

301  79 

196  68 

103  93 

77  42 

378  03 

162  85 

102  21 

68  95 

334  i»l 

July  

173  65 

102  55 

66  12 

342  32 

140  99 

83  40 

56  22 

2-0  61 

September  

144  73 

82  03 

57  16 

283  92 

147  96 

84  73 

58  00 

290  69 

137  65 

80  85 

54  53 

273  03 

128  38 

75  07 

47  94 

251  39 

1,818  09 

1,003  85 

717  32 

3,  539  26 

1864. 

110  14 

59  47 

39  05 

208  66 

112  15 

51  67 

33  39 

197  21 

222  29 

111  14 

72  44 

405  87 

26  ;    .   NEW  YORK  CUSTOM  HOUSE. 


RECAPITULATION. 


Date. 

5  per  cent. 
Harbor-masters. 

3  per  cent. 
Health  officer. 

2i  per  cent. 
State  hospital. 

Total. 

1861. 
April  8  to  Dec.  31 
1862   

$1,514  51 
1,956  9] 
1,818  09 
222  29 

$782  20 
1,063  22 
1,003  85 
111  14 

$698  30 
915  35 
717  32 
72  44 

$2,995  01 
3,935  48 
3,539  26 
405  87 

1863   

1864,  Jan.  and  Feb.... 

5,511  80 

2,960  41 

2,403  41 

10,875  62 

I  will  make  an  explanation  of  this.  By  the  laws  of  the  State  of  New  York, 
the  harbor-masters  collect  fees  from  ships  for  obtaining  berths  at  the  docks. 
The  health  officer  collects  fees  from  passengers  on  board  ships,  and  the  officers 
of  the  State  hospital  are  required  to  do  the  same.  These  fees  are  added  to  the 
manifest  of  the  ship  when  it  is  presented  to  enter  at  this  port,  and  must  be  col- 
lected before  the  ship  is  allowed  to  depart.  These  State  officers — the  harbor- 
masters, health  officer,  and  the  managers  of  the  State  hospital — have  and  can 
obtain  no  facilities  for  the  collection  of  these  fees  in  a  way  satisfactory  to  them 
excepting  at  the  custom-house.  They  have  for  a  great  many  years  requested 
the  person  holding  for  the  time  being  the  office  of  collector  to  collect  those  fees 
at  the  same  time  that  he  collected  fees  due  to  the  United  States,  and  hold  the 
money  subject  to  their  order. 

This  arrangement  has  existed  for  a  great  many  years,  and  the  service  has 
been  performed  by  the  various  collectors  who  have  held  office,  although  it  is  a 
responsibility  which  is  not  attached  to  the  office  of  collector  in  any  way,  but 
is  a  personal  responsibility  and  trust.  The  fees  must  be  collected,  and  the 
evidence  of  it  furnished  to  the  collector,  before  he  can  clear  a  vessel.  It  saves 
these  officers  all  trouble  and  risk  to  have  these  fees  collected  by  a  responsible 
person,  and  gives  less  trouble  to  clerks  here  than  it  would  to  receive,  examine, 
and  file  vouchers  for  every  payment — for  the  money  is  now  received  and  noted 
with  great  facility. 

Question.  Is  there  any  other  source  from  which  you  have  received  anything, 
except  what  you  have  now  mentioned  1 

Answer.  I  have  not  had  any  other  receipts,  either  as  collector  or  as  agent, 
other  than  I  have  stated,  according  to  the  best  of  my  knowledge  and  belief, 
excepting  commissions  amounting  to  895  87  on  two  lots  of  timber  and  other 
property  sent  to  me  from  Virginia  in  1862  and  sold. 

Question.  Do  these  schedules,  either  one  of  them,  give  us  the  amount  which 
it  is  reported  or  alleged  you  have  received  in  the  cotton  business — for  sales  of 
cotton  under  the  direction  of  the  government? 

Answer.  I  have  received  no  commissions  for  that  business. 

Question.  Have  you  not  sold  cotton  here  under  the  direction  of  the  govern- 
ment ? 

Answer.  I  have. 

Question.  In  behalf  of  the  government'? 
Answer.  I  have. 

Question.  Have  you  received  any  commissions  upon  those  sales  ? 

Answer.  I  have  not. 

Question.  Are  you  to  receive  any  1 

4nswer.  I  have  not  charged  them  any  ;  my  accounts  have  not  been  rendered 
and  closed. 

Question.  I  will  ask  you  whether  you  design  to  make  such  charges;  and  if 
so,  to  what  amount  ? 


NEW  YORK  CUSTOM  HOUSE. 


27 


Answer.  I  do  not  design  to  make  such  charges,  but  hold  the  subject  under 
advisement. 

Question.  Have  you  been  invited  or  expected  to  do  so  1 

Answer.  I  have  neither  been  invited,  nor  do  I  know  that  I  am  expected  to 
do  so. 

Question.  The  committee  understand  you  to  say  that  you  have  never  received, 
preferred  or  made  a  charge  of  that  kind  ;  that  you  have  not  been  invited  to  do 
so ;  and  that  you  do  not  expect  to  make  such  charge  ] 

Answer.  I  have  been  advised  by  persons  to  do  it  as  a  matter  of  right  and 
propriety,  because  I  have  assumed  a  very  great  responsibility  in  the  matter, 
and  have  been  threatened  with  suits,  and  also  upon  the  further  ground  that  the 
commissions,  if  charged,  would  be  for  the  management  of  property  not  belong- 
ing to  the  United  States,  and  upon  money  not  belonging  to  the  treasury  of  the 
United  States.  The  cotton  was  received,  stored,  and  a  large  portion  of  it  ginned, 
prepared  for  the  market,  and  sold  upon  my  personal  responsibility,  and  the 
greater  part  of  the  proceeds  were  expended  for  the  purchase  and  shipment  to 
South  Carolina  of  clothing  and  provisions  for  the  destitute  colored  people  there ; 
for  tools,  farming  implements,  agricultural  seeds,  and  payments  for  labor.  T 
managed  this  business  with  strict  economy  and  care.  I  do  not  relinquish  my 
right  to  make  proper  charges,  but  I  do  not  intend  to  avail  myself  of  that  right 
unless  I  should  incur  liabilities  and  losses,  which  would  make  it  a  matter  of 
equity  and  duty  to  provide  for. 

Question.  I  will  now  ask  you  the  question  which  will  cover  the  whole  ground, 
whether  you  have  received,  either  from  the  government,  individuals,  firms,  or 
consignees,  any  commissions  for  these  purchases  1 

Answer.  None  whatever,  in  any  shape  or  form. 
By  Mr.  Le  Blond  : 

Question.  I  see  from  the  published  reports  of  Mr.  Stanton's  examination,  and 
also  from  your  testimony,  -that  he  took  fees  outside  of  his  legitimate  duties  as 
an  officer.  I  will  ask  you  this  question:  Did  you  authorize  Mr.  Stanton  to  take 
fees  not  required  by  the  revenue  laws  ? 

Answer.  I  did  not  authorize  him  to  take  any  fees.  Mr.  Stanton  was  a  notary 
public,  and  it  was  a  matter  of  convenience,  as  I  supposed,  to  the  persons  doing 
business  thereto  have  their  bonds  completed  there  by  their  affidavits,  without 
going  to  find  a  notary.    I  did  not  prohibit  his  taking  notarial  fees. 

Question.  Did  you  know  of  his  taking  such  fees  % 

Answer.  I  rather  think  I  did,  but  only  the  regular  fees  of  a  notary.  I  un- 
derstand that  he  only  took  such. 

Question.  Do  you  know  of  his  taking  other  fees  aside  from  his  notarial  fees  i 
Answer.  I  do  not,  unless  his  statement  admits  it. 

Question.  Did  you  know  that  Mr.  Stanton  had  communicated  the  fact  to  the 
Secretary  of  the  Treasury  that  you  authorized  him  to  take  these  notarial  fees  1 
Answer.  I  did  not. 

Question.  Have  you  seen  his  public  statement  alleging  that  fact  ? 

Answer.  I  have  seen  a  letter,  published  in  the  newspapers,  addressed  to  the 
Secretary  of  the  Treasury. 

Question.  Averring  in  it  that  you  had  so  authorized  him  ? 

Answer.  I  did  not  so  understand  it,  though  I  never  read  it  but  once,  and  that 
very  cursorily. 

Question.  I  will  ask  you  if  the  laws  of  the  United  States  do  not  require  a 
notarial  seal  to  one  of  these  bonds  to  make  it  valid  ? 
Answer.  I  was  not  aware  that  they  did. 

Question.  Is  there  any  rule  or  regulation  in  the  custom-house  requiring  it  to 
be  acknowledged  ? 

Answer.  I  think  I  suggested  to  Mr.  Stanton  at  one  time  that  it  would  be 


28 


NEW  YORK  CUSTOM  HOUSE. 


better  that  these  parties  who  were  offered  as  sureties  should  justify  in  respect 
to  their  responsibility  on  oath,  as  the  courts  required  iu  some  cases,  in  order  to 
have  evidence  that  they  were  sufficient  sureties. 

Question.  Does  the  acknowledgment  in  these/  bonds  aver  that  the  sureties 
are  responsible  ? 

Answer.  I  cannot  state  positively  as  to  that,  for  I  have  not  examined  the 
bonds  with  reference  to  that  matter,  but  a  proper  form  of  justification  would 
state  that  the  sureties  were  worth  the  sum  required  to  be  secured  over  and 
above  all  their  jusl  debts  and  liabilities,  and  also,  in  case  the  bonds  should  be 
forfeited]  that  these  parties  should  have  property  in  the  district  that  might  be 
reached. 

Question.  Do  you  know  whether  or  not  there  is  a  considerable  amount  ot 
money  due  the  United  States  for  penalties  for  violation  of  the  revenue  laws  of 
the  United  States,  or  for  duties  uncollected'? 

Answer.  Questions  have  been  raised  in  respect  to  shipments  of  wool  from 
foreign  ports  into  this  country,  and  especially  from  Buenos  Ayres,  whether,  in 
the  making  out  of  the  invoices  in  one  currency  and  transmitting  them  reduced 
into  another  currency,  some  evasion  of  the  revenue  laws  had  not  been  practiced 
by  importers.  That  question  was  raised  by  my  predecessor  before  I  came  into 
office.  It  was  a  question  for  experts  to  settle  ;  I  think  myself  it  is  a  question, 
properly  decline  to  bring  suits  ;  at  the  same  time,  I  have  always  been  ready  to 
bring  them,  if  it  were  deemed  advisable  to  do  so.  Proposals  were  made  to  the 
about  which  there  are  so  many  differing  opinions,  that  the  government  might 
Secretary  of  the  Treasury  to  bring  suits  for  the  recovery  of  these  duties,  and  he 
lias  thus  far  declined  to  authorize  them. 

Question.  What  is  the  amount  in  controversy  in  the  event  that  the  govern- 
ment was  entitled  to  recover  the  duties  upon  these  importations  ? 

Answer.  A  very  large  amount,  I  should  think ;  I  cannot  say  how  much. 

Question.  Would  the  amount  be  a  million  of  dollars? 

Answer.  I  have  heard  it  stated  as  high  as  that ;  I  "have  made  no  calculations 
myself. 

Question.  Has  there  ever  been  a  suit  commenced  ? 

Answer.  There  are  three  suits  pending  in  Boston  and  one  in  New 

York,  involving  the  questions  at  issue  between  the  government  and  importers 
from  Buenos  Ayres. 

Question.  By  this  reduction  of  currency  do  they  bring  the  article  imported 
under  the  rates  that  would  subject  it  to  the  payment  of  duties  at  this  port  ? 

Answer.  By  one  mode  of  calculation  which  is  claimed  to  be  correct,  some 
portion  of  the  importations  here  would  be  subject  to  duty;  by  another  mode  of 
calculation  they  would  come  in  free. 

Question.  I  also  notice,  that  Mr.  Stanton  says  that  you  authorized,  or  rather 
sanctioned,  his  taking  bonds  without  sureties.  Have  you  ever  given  him  such 
sanction  ? 

Answer.  I  do  not  believe  I  have. 

Question.  Are  you  sure  that  you  did  not? 

Answer.  1  will  state  upon  this  point,  that  while  engaged,  as  I  am  most  of  the 
time  in  the  custom-house,  in  the  consideration  of  questions  that  are  put  to  me 
with  great  rapidity  in  regard  to  the  business  of  the  office,  Mr.  Stanton  and 
other  deputies  have  been  in  the  habit  of  coming  in  while  I  have  been  engaged, 
and  stating  cases*  that  have  been  presented  for  their  consideration,  and  which 
need  a  decision  on  my  part,  and  also  the  rules  and  regulations  in  respect  to 
them.  1  would  not  have  time  to  look  at  the  facts  in  any  other  light  than  they 
were  represented  to  me,  and  sometimes  I  would  make  off-hand  decisions  in  re- 
gard to  them.  I  have  no  means  of  preserving  these  statements,  and  I  cannot 
state  positively  what  1  may  have  said  in  regard  to  all  cases  presented  to  me. 


NEW  YORK  CUSTOM  HOUSE. 


29 


I  am  confident,  however,  that  I  have  given  no  such  direction,  as  this  question 
assumes,  to  Mr.  Stanton. 

Question.  I  also  notice,  by  some  testimony  here,  that  some  of  these  blockade- 
runner  bonds  were  cancelled.  Was  that  done  without  your  knowledge  or  consent  ? 

Answer.  I  presume  they  were;  I  have  no  recollection  of  these  bonds,  or  of 
any  questions  arising  in  regard  to  them. 

Question.  You  presume  they  were  cancelled  without  your  knowledge  or 
consent? 

Answer.  I  have  no  doubt  that  they  were. 

Question.  Are  you  certain  that  you  never  did  give  any  such  sanction? 

Answer.  I  would  be  certain  and  positive  that  I  did  not  but  for  this:  Mr. 
Stanton  might  have  come  to  me  and  made  a  statement  of  facts  upon  which  I 
might  have  said  a  bond  could  be  cancelled.  These  facts  might  or  might  not 
have  been  correct.  Mr.  Stanton  was  a  lawyer,  having  charge  of  this  particular 
division,  giving  his  whole  mind,  as  I  supposed,  to  the  business,  and  all  the 
questions  that  might  arise  in  it.  I  trusted  to  his  intelligence  and  accuracy  in 
making  statements  of  fact,  and  to  some  extent  to  his  professional  ability  in 
making  representations  of  the  law  and  the  regulations  or  instructions.  Present- 
ing cases  for  instant  decision  as  he  did,  it  is  possible  that  in  some  instances  I 
may  have  been  misled  and  arrived  at  decisions  which  were  not  warranted  by 
the  law  and  the  facts;  but  I  have  no  recollection,  nor  do  I  believe,  that  I  ever 
gave  any  directions  to  him  to  cancel  these  bonds  in  the  manner  in  which  they 
were  cancelled.  In  regard  to  the  cancellation  of  bonds  by  order  of  the  collector, 
the  instructions,  according  to  my  recollection,  require  that  the  words  "can- 
celled by  consular  certificate"  should  be  written  upon  the  bond;  that  the  evi- 
dence of  its  cancellation  should  be  in  the  words  "cancelled  by  consular  cer- 
tificate." 

By  Mr.  Rollins : 

Question.  You  say  that  many  of  these  bonds  were  cancelled  upon  the  verbal 
representations  of  parties  interested.  Would  the  regulations  allow  of  any  such 
cancellation,  or  did  you  give  any  orders  that  they  might  be  thus  cancelled  ? 

Answer.  I  was  misunderstood.  My  decisions  were  sometimes  made  upon 
Mr.  Stanton  s  representations  of  the  case.  But  I  understood  from  him  that  he 
required  evidence  in  proper  form  to  satisfy  his  mind  that  the  conditions  of  the 
bond  had  been  complied  with ;  and  where  circumstances  or  facts  came  to  his 
knowledge  justifying  a  suspicion  that  the  consul's  certificate  was  erroneous  in 
point  of  fact,  he  insisted  upon  other  and  further  evidence  in  due  form  to  satisfy 
him  of  the  propriety  of  cancelling  the  bond.  This  was  understood  to  be  the 
practice  in  all  cases. 

By  Mr.  Le  Blond: 

Question.  I  will  ask  this  further  question,  and  I  do  it  for  the  purpose  of 
eliciting  information  as  to  the  general  manner  of  investigating  these  matters: 
Did  you  pay  any  special  attention  to  what  is  known  as  the  bond  bureau — to 
the  management  of  business  in  that  bureau  ? 

Answer.  I  gave  special  attention  to  the  bond  bureau,  as  I  did  to  the  other 
business  of  the  custom-house,  when  anything  occurred  that  seemed  to  require  it. 

Question.  I  notice  in  this  testimony  that  you  speak  of  the  gentleman  who 
first  communicated  to  you  any  cause  for  suspicion  with  regard  to  Stanton.  Who 
was  this  person? 

Answer.  Mr.  Hussey. 

Question.  Is  he  a  resident  of  this  city  ? 

Answer.  I  do  not  know  whether  he  is  a  resident  of  this  city  or  Baltimore. 
Question.  What  is  his  given  name  ? 
Answer.  I  cannot  recollect  his  given  name. 


30 


NEW  YORK  CUSTOM  HOUSE. 


Question.  Did  you  at  that  time  take  any  action  upon  that  information  ? 

Answer.  I  took  the  action  mentioned  in  my  former  testimony. 

Question.  Has  the  practice  of  taking  illegal  fees,  or  omitting  the  collection  of 
legal  fees,  been  carried  on  in  Mr.  Stanton's  department,  or  in  any  other  depart- 
ment of  the  custom-house,  to  your  knowledge  ? 

Answer.  1  have  already  referred  to  the  matter  of  taking  notarial  fees.  The 
taking  of  any  fees  whatever  by  Mr.  Stanton,  or  any  other  officer  in  the  custom- 
house, for  drawing  papers  for  parties  doing  business  in  the  custom-house,  was 
never  known  to  me.  When  the  first  bond  was  to  be  taken  under  the  treasury 
regulations  in  reference  to  internal  trade,  (which  was  a  bond  of  Adams's  Ex- 
press Company,)  Mr.  Stanton  took  particular  pains  to  alter  and  make  it  and 
the  accompanying  papers  satisfactory.  I  had  suggested  certain  alterations,  and 
lie  took  some  extra  trouble  about  them.  He  casually  remarked  to  me  that  he 
supposed  he  might  properly  charge  $5  for  preparing  them.  I  replied  that  no 
such  charge  could  be  made,  and  thought  my  reply  settled  the  question.  I  did 
not  know  of  his  charging  for  drawing  any  paper  in  connexion  with  his  official 
business.  1  presumed  that  he  only  received  the  usual  fees  for  notarial  certifi- 
cates.   I  understand  that  he  denies  receiving  any  other  compensation. 

Question.  Is  that  practice  carried  on  now  in  any  one  of  the  departments  of 
the  custom-house? 

Answer.  Not  to  my  knowledge.  Let  me  say  a  word  here  in  respect  to  the 
omission  to  collect  fees.  When  this  law  went  into  operation  about  taking  bonds, 
this  question  was  raised  about  the  right  to  charge  government  fees,  and  I  con- 
sulted some  of  the  old  officers  in  the  custom-house.  Mr.  Clinch  was,  I  think, 
one  whom  I  consulted.  He  then  thought  we  had  no  right  to  charge  the  fee,  and 
still,  I  believe,  doubts  the  propriety  of  the  charge.  WTe  concluded  that  we  had 
no  authority  to  charge  a  fee  on  these  bonds,  as  we  did  on  other  bonds,  because 
those  bonds  were  not  required  when  that  law  was  passed,  and  only  applied  to 
those  that  were  then  required. 

Question.  WTiose  duty  is  it  to  examine  these  bonds  and  approve  them? 

Answer.  The  deputy  collector. 

Question.  Is  it  the  duty  of  the  naval  officer  to  approve  any  of  these  bonds  ? 

Answer.  I  cannot  say  that  it  is,  unless  he  has  reason  to  suspect  that  there 
are  some  errors  or  intentional  violation  of  the  regulations,  and  then  I  consider  it 
to  be  his  duty,  because  the  permit  to  ship  goods  cannot  be  given  without  the 
bonds  being  taken  to  him,  and  he  must  sign  the  clearance,  as  well  as  my  deputy. 

Question.  For  how  long  a  period  had  you  omitted  to  charge  fees  upon  those 
bonds  ? 

Answer.  I  think  up  to  the  time  of  Mr.  Stanton's  removal.  I  do  not  consider 
the  claim  a  perfectly  clear  one  as  to  the  fees  on  those  bonds.  When  Mr.  Hans- 
corn  took  charge  of  the  business  of  that  bureau,  he  again  raised  the  question  of 
charging  fees,  and  we  concluded  to  make  the  charge. 

Question.  Let  me  ask  you  in  regard  to  the  appraisers'  bureau :  Have  you  had 
any  information  of  frauds  or  illegal  practices  in  that  department  of  your  office? 

Answer.  I  have  had  frequent  complaints  of  loss  of  goods  sent  there  for  ex- 
amination. 

Question.  When  was  that  matter  first  communicated  to  you — how  long  ago  ? 
Answer.  These  complaints  have  been  frequent  for  a  long  time. 
Question.  Have  you  at  any  time  taken  any  action  with  reference  to  ferreting 
out  such  losses? 

Answer.  1  have  no  power  to  take  any  action,  further  than  to  call  upon  the 
appraisers  to  report  the  facts  in  such  cases ;  and,  having  obtained  such  reports, 
I  have  communicated  them  to  the  Secretary  of  the  Treasury,  who  has  directed 
an  examination  into  this  subject  by  special  agents. 

Question.  And  investigations  have  been  made  by  special  agents  ? 

Answer.  Yes,  sir. 


NEW  YORK  CUSTOM  HOUSE. 


31 


Question.  When  was  the  first  examination  made? 

Answer.  I  do  not  know.  These  examinations  were  commenced  without  any 
communication  to  me.    I  only  hear  of  them  when  they  are  made. 

Question.  Have  you  heard  of  more  than  one  examination  being  made  ? 

Answer.  Mr.  Jordan  took  testimony  upon  the  subject,  and  I  think  Mr.  Bailey 
has,  and  I  don't  know  but  there  have  been  others. 

Question.  Have  you  heard  of  other  agents  having  made  examination  in  that 
department  ? 

Answer.  I  cannot  name  any  other  now. 

Question.  Have  there  been  any  removals  made  in  consequence  of  any  alleged 
corruptions  in  that  department  ? 

Answer.  There  have  been  several  removals  made  in  the  appraisers'  office.  I 
have  no  power  of  removal  or  appointment  there ;  these  appointments  are  not 
made  by  me.  The  general  appraisers  and  the  local  appraisers  are  appointed  by 
the  President,  and  the  assistant  appraisers  are  appointed  by  the  Secretary  of  the 
Treasury,  with  the  approval  of  the  President.  The  subordinate  officers  of  the 
appraisers'  department  are  appointed  by  the  local  board  of  appraisers. 

By  Mr.  Rollins : 

Question.  Are  not  some  of  these  appointments,  which  are  nominally  made  by 
the  President  or  the  Secretary  of  the  Treasury,  really  and  substantially  made 
by  yourself? 

Answer.  The  Secretary  of  the  Treasury,  some  months  ago,  decided  that  the 
board  of  appraisers,  in  making  their  nominations,  should  make  them  through 
the  collector.  The  proceeding  amounts  to  this,  that  they  send  their  appoint- 
ments to  me,  to  be  forwarded  to  the  Secretary  of  the  Treasury. 

Question.  Do  you  not  make  some  recommendation,  either  of  approval  or  dis- 
approval ? 

Answer.  I  think  not.  The  surveyor  does  the  same  thing  with  the  clerks  in 
his  office  ;  but  I  have  no  power  over  the  appointment  or  removal  of  these  officers. 

By  Mr.  Le  Blond  : 

Question.  You  say  that  some  examinations  have  been  made  by  the  direction 
of  the  Secretary  of  the  Treasury  Have  any  removals  been  made  as  the  result 
of  those  examinations  ? 

Answer.  1  am  not  able  to  answer  positively,  but  think  there  were  many  so 
made. 

Question.  Is  there  a  special  agent  from  the  Treasury  Department  here  now 
to  make  such  investigations  ? 

Answer.  There  is,  and  has  been  for  some  time — J.  F.  Bailey. 

Question.  What  instructions  have  been  given  to  him  relative  to  the  regula- 
tions of  the  custom-house  ? 

Answer.  I  have  not  seen  any  instructions. 

Question.  Have  any  instructions  sent  to  Mr.  Bailey  been  shown  to  you  by 
Mr.  Bailey  \ 

Answer.  They  have  not.  I  will  state  that  Mr.  Bailey,  as  I  understand,  has 
been  for  some  time  making  investigations  in  Boston  and  New  York.  His  in- 
vestigations here  have  generally  been  conducted  without  my  knowledge,  not 
always  knowing  myself  what  they  related  to. 

Question.  Does  he  not  control  things  here  ? 

Answer.  He  does  not  exercise  any  control  over  me  in  my  duties. 

Question.  Has  Mr.  Bailey  stated  in  your  presence  that  if  the  President 
removed  you  from  your  position,  Mr.  Chase  would  resign  his  position  as  Secretary 
of  the  Treasury  ? 

Answer.  I  do  not  think  he  has. 


32 


NEW  YORK  CUSTOM  HOUSE. 


By  the  chairman : 

Question.  Have  you  any  knowledge  of  seizures  being  made  of  stores,  books, 
papers,  Szc,  where  there  was  no  probable  ground  of  suspicion,  and  where  any 
person  or  persons  suggesting  or  instigating  the  seizure  have  said,  "Seize  them; 
let  them  shell  out ;  make  them  come  down;  they  live  in  marble  rows,"  &c.  ? 

Answer.  I  have  no  knowledge  of  seizures  being  made  or  stores  being  entered 
and  taken  possession  of  by  revenue  officers  without  probable  cause  or  grounds 
for  suspicion  that  the  revenue  laws  had  been  violated  by  the  occupants  of  said 
stores;  nor  have  I  any  knowledge  of  any  books  or  papers  of  merchants  having 
been  seized  without  reason  for  suspecting  that  such  books  and  papers  contained 
evidences  of  fraud  practiced  upon  the  revenue.  I  have  heard  expressions 
similar  to  those  mentioned  in  the  question  in  reference  to  importers  suspected  of 
frauds  upon  the  revenue.  There  may  have  been  proceedings  of  the  character 
referred  to  in  the  question,  and  remarks  of  the  character  referred  to,  without 
probable  grounds  of  suspicion  or  justification,  but  I  cannot  say  that  I  know  it 
to  be  the  ease. 

Question.  Have  you  ever  heard  of  any  such  seizures — I  mean  the  seizures  of 
the  store,  books,  and  papers  of  merchants  ? 

Answer.  I  have  heard  of  such  proceedings ;  the  revenue  officers  may  some- 
times have  acted  in  such  matters  upon  incorrect  information,  but  there  is  no 
case  of  the  kind  which  occurs  to  me  now  within  my  knowledge  or  recollection. 
I  have,  however,  had  apprehensions  that  mistakes  and  indiscretions  of  this 
character  might  occur. 

Saturday,  March  8,  1864. 

Examination  of  Mr.  Barney  resumed. 
By  the  chairman : 

Question.  The  committee  have  already  asked  you  with  reference  to  your 
official  receipts,  directly  and  indirectly,  and  you  have  submitted  to  them  the 
exhibits  of  such  receipts.  I  will  now  ask  you  one  further  question.  Have  you 
a  partnership  with  a  legal  firm  in  this  city  ? 

Answer.  I  have. 

Question.  Who  are  the  partners  with  you  ? 

Answer.  William  Allen  Butler  and  George  W.  Parsons.  The  firm  is  Barney, 
butler  &  Parsons. 

Question.  Do  you  share  in  the  proceeds  and  profits  of  that  firm  ? 

Answer.  I  have  an  arrangement  by  which  I  remain  as  a  partner,  to  go  back 
when  I  please.    I  perform  no  duties  there. 

Question.  Has  that  firm  been  employed  as  counsel  by  the  government  ? 

Answer.  Not  to  my  knowledge,  except  that  they  were  employed  as  counsel 
for  the  government  in  a  suit  which  arose,  I  think,  in  Mr.  Curtis's  time. 

Question.  That  was  before  you  were  appointed  collector? 

Answer.  Yes,  sir;  I  think  about  fifteen  years  ago. 

Question.  They  have  been  employed  in  no  new  cases,  to  your  knowledge  ? 
Answer.  No,  sir. 

Question.  Has  that  firm  been  employed  by  yourself  or  any  government 
official  in  the  supervision,  sale,  or  disposition  of  any  cotton  of  the  government, 
or  forfeited,  condemned,  or  damaged  property  sold  on  government  account  here  ? 

Answer.  They  have  not,  to  my  knowledge. 

Question.  To  your  knowledge,  have  they  been  employed  in  any  transaction, 
professional  or  extra  professional,  by  which  they  have  charged  or  become 
entitled  to  a  commission  from  the  government? 

Answer.  They  have  not. 

Question.  Have  they  had  anything  to  do,  to  your  knowledge,  in  any  shape 
with  the  disposition  of  cotton  in  this  way  on  government  account  ? 


NEW  YORK  CUSTOM  HOUSE. 


33 


Answer.  They  have  not. 
Question.  Have  you  yourself? 
Answer.  I  have  not. 

Question.  By  which  you  are  entitled  to  a  commission  ? 

Answer.  No,  sir;  I  am  entitled  to  commissions,  I  believe,  by  law,  but  do  not 
intend  to  claim  them  unless  it  shall  be  necessary  for  my  protection  against  losses. 

Question.  Do  you  say  you  never  had  any  such  claim,  and  do  not  intend  :  i 
make  any  Buch  claim? 

Answer.  I  do  not  intend  to  make  any  such  claim  except  to  protect  myself 
and  sureties  from  personal  responsibility  and  loss. 

Question.  Is  there  any  arrangement  or  understanding  by  you  with  any  per- 
son or  persons  who  have  bought  government  effects,  or  sold  government  effects, 
or  where  effects  have  been  sold  on  government  account,  by  which  you  have  par- 
ticipated directly  or  indirectly,  or  expect  to  participate  directly  or  indirectly,  in 
any  commissions  or  profits  ? 

Answer.  No,  sir  ;  neither  myself  nor  any  person  through  me. 

Question.  I  want  to  ask  you,  what  is  the  official  relation  subsisting  betwixl 
you  and  the  naval  officer  ? 

Answer.  It  is  that  of  chiefs  of  co-ordinate  departments. 

Question.  But  who  is  the  responsible  head  ] 

Answer.  The  collector  is  the  head  of  the  custom-house.  The  theory  of  th< 
naval  office  is,  that  it  is  to  operate  as  a  check  upon  the  acts  of  the  collector. 

Question.  In  the  operation  of  it  is  it  really  any  check  ?  I  mean  in  the  entry  of 
goods. 

Answer.  That  would  be  a  matter  of  opinion. 

Question.  In  directing  and  in  refusing  clearances  to  vessels,  in  making  seizure- 
of  them,  and  in  making  seizures  of  stores,  books,  and  papers  on  land,  who  is  the 
responsible  person  or  persons  ?  Does  the  direction  emanate  from  the  naval  of- 
ficer or  the  collector,  or  from  their  combined  wisdom  ? 

Answer.  The  collector  has  the  legal  and  moral  responsibility  of  those  acts, 
but  as  he  cannot  perform  them  in  person,  he  is  obliged  to  delegate  their  perform- 
ance to  others. 

Question.  Who  performs  them  practically  in  the  New  York  custom-house? 

Answer.  The  tariff  of  1861,  called  the  Morrill  tariff,  went  into  operation  on 
the  1st  of  April.  On  the  8th  I  entered  upon  the  duties  of  the  collectorshio 
On  the  loth  the  rebellion  had  commenced.  Congress  at  the  extra  session  in 
1861  passed  various  acts  to  meet  the  exigencies  of  the  times,  which  required 
vigilance  and  official  action  on  my  part.  The  duties  of  the  collector,  which  are  in 
ordinary  times  considered  sufficient  to  occupy  his  time  and  thought,  were  by 
this  new  state  of  things  enormously  increased. 

It  became  necessary  that  the  business  of  the  custom-house  should  be  so  organ- 
ized as  to  make  the  chiefs  of  the  various  divisions  responsible  for  the  proper 
conduct  of  that  portion  which  should  be  assigned  to  their  charge  respectively 
Upon  them  was  devolved  the  duty  of  deciding  all  questions  arising  in  the  trans- 
action of  business  in  their  several  departments,  and  of  reporting  daily  to  me  any 
matter  or  incident  of  importance  in  their  proceedings.  Printed  regulations  were 
posted  about  the  custom-house,  and  persons  doing  business  there  were  thus  in- 
formed that  they  might  appeal  to  the  collector  for  the  correction  of  any  error  or 
the  redress  of  any  grievance.  This  disposal  of  the  business  I  assumed  would 
bring  to  my  attention  everything  important  for  me  to  know,  and  give  me  time  to 
attend  to  such  things;  and  I  also  assumed  that  the  business  was  in  competent 
hands  and  was  going  on  properly,  unless  I  heard  something  to  the  contrary. 
To  Mr.  Deputy  Stanton  I  assigned  all  questions  of  law,  and  the  charge  of  all 
claims  for  and  against  the  government.  Embraced  in  these  were  the  claims 
for  lines,  penalties,  and  forfeitures ;  and  his  special  attention  was  required  to  frauds 
II.  Hep.  Com.  Ill  -3 


34 


NEW  YOBK  QUSTOM  HOUSE. 


on  the  revenue  and  evasions  of  the  revenue  laws,  and  to  the  execution  of  the 
laws  of  1S61  providing  for  the  forfeiture  of  ships  and  other  property  of  rebels 
found  in  this  collection  district.  Mr.  Denison,  the  naval  olticer,  soon  after  ho 
assumed  the  duties  of  his  office,  suggested  that  he  had  the  requisite  time  to  attend 
t«>  cases  of  seizure,  and  desired  to  have  charge  of  that  business.  I  consented 
that  lie  should  have  the  direction  of  it  in  connexion  with  Mr.  Stanton,  who  should 
aid  him  in  the  preliminary  investigations,  and  report  for  my  official  action.  Mr. 
Denison  impressed  me  witji  the  idea  that  he  (D.)  was  severe  in  his  judgment 
of  the  conduct  and  motives  of  importers,  and  too  anxious  to  make  money  out  of 
their  alleged  delinquencies  in  custom-house  transactions,  and  1  was  afraid  of  being 
compromised,  I  therefore  cautioned  Mr.  Stanton  not  to  forget  that  I  was  morally 
and  pecuniarily  responsible  for  whatever  action  should  be  taken  ;  that  while 
everything  proper  and  possible  should  be  done  to  prevent  and  punish  frauds 
upon  the  revenue,  all  unnecessary  severity  and  all  oppression  must  be  avoided  ; 
and  that  no  suits  should  be  advised  or  brought  when  the  right  was  not  so  clearly 
with  th  !  government  that  success  was  well  assured. 

Under  this  arrangement  the  investigations  and  proceedings  connected  with 
seizures  and  forfeitures  were  conducted,  and  the  adjustments  of  cases  not  con- 
tested were  made.  My  official  action  was  based  upon  the  investigations  and 
conclusions  reported  to  me  by  these  officers.  I  am  not  aware  of  any  cases  of 
seizures  in  the  early  period  of  my  administration  which  were  presented  or  ad- 
justed, except  upon  such  report  and  upon  the  recommendation  of  the  officers 
named,  or  one  of  them.  In  cases  where  they  concurred  in  recommending  a 
seizure,  1  sanctioned  it,  unless  facts  appeared  which  led  me  to  doubt  whether 
sufficient  cause  existed.  When  this  was  the  case  no  seizure  was  made  ;  but  such 
case,  if  deemed  of  sufficient  consequence,  was  submitted  to  the  Solicitor  of  the 
Treasury  for  advice. 

In  May,  1SG3,  Mr.  Hanscom,  in  whose  ability  and  integrity  I  had  and  still 
have  great  confidence,  was  appointed  deputy  collector,  and  I  directed  him  to 
represent  me  in  seizure  cases,  and  all  other  claims  in  favor  of  the  government. 
In  assigning  him  to  this  duty  I  gave  him  directions  to  be  careful  that  no  seizures 
be  prosecuted  that  ought  not  to  be  made.  I  reminded  him  that  I  was  respon- 
sible for  such  seizures,  and  that  the  impression  existed  that  improper  and  op- 
pressive proceedings  had  been  taken  by  the  custom-house  authorities;  that  I 
depended  upon  him  to  look  into  the  existing  cases,  as  well  as  those  which  might 
thereafter  arise,  and  see  that  no  doubtful  claim  was  prosecuted  or  made — that 
no  injustice  or  oppression  be  practiced;  that  I  was  particularly  anxious  to  be 
protected  againsl  all  just  causes  of  complaint  in  this  part  of  the  business,  because 
in  its  results  I  was  pecuniarily  interested,  and  my  motives  were  liable  to  be 
questioned. 

The  immediate  action  of  Mr.  Hanscom  in  recommending  the  abandonment  of 
several  seizures  already  made  gave  me  the  assurance  that  my  wishes  would  be 
exec  uted,  and  I  have  no  reason  to  doubt  that  they  have  been. 

Question.  I  infer  from  the  answer  you  have  just  given  that  in  cases  of  seiz- 
ures contemplated,  Mr.  Denison  and  Mr.  Hanscom  sometimes  act  without  con- 
sultation with  you? 

Answer.  Yes,  sir. 

Question.  But  that  they  ultimately  come  before  you? 

Answer.  Not  always;  I  do  not  pass  upon  cases  now  as  frequently  as  I  did 
in  the  early  part  of  my  administration. 

Question.  What  is  the  information  upon  which  these  seizures  are  made,  when 
vessels  are  detained  in  the  harbor  and  stores  taken  possession  of  in  bond  ? 

Answer.  Generally  upon  information  furnished  by  the  inspectors. 

Question.  How  was  it  with  the  Corsica  ? 

Answer.  I  do  not  recollect  that  she  was  seized.    Vessels  coming  into  port 


NEW  YORK  CUSTOM  HOUSE 


§5 


may  be  seized  for  violations  of  the  revenue  laws,  or  if  owned  altogether  or  in 
part  at  the  south. 

Question.  From  what  source  do  you  say  you  derive  your  information  upon 
which  you  make  seizures  ? 

Answer.  It  is  derived  from  various  sources,  but  generally  from  the  inspectors, 
who  have  in  charge  the  boarding  of  the  ship,  the  examination  of  the  passengers, 
and  the  discharge  of  the  ship's  cargo.  We  also  derive  information  from  the  ex- 
amination of  invoices  and  entries  of  goods.  Under  this  state  of  things  growing 
out  of  the  war,  we  have  seized  vessels  for  taking  an  outward  cargo,  when  it  was 
done  in  violation  of  the  law. 

Question.  It  is  reported  or  alleged  that  the  custom-house  makes  seizures  upon 
mere  suspicion,  sometimes  upon  very  slight  suspicions,  and  it  is  reported  that 
the  motive  is  not  so  much  a  vindication  of  the  law  as  the  divisible  interest  to  be 
reached  by  these  seizures.  I  want  to  direct  your  attention  to  that,  and  ask 
whether  the  committee  or  the  country  have  reason  to  suppose  that  there  is  any 
foundation  for  such  suspicions? 

Answer.  The  law,  in  giving  to  the  revenue  officers  an  interest  in  the  seizures 
which  they  may  make  and  successfully  prosecute,  assumes  that  that  interest  in 
the  result  is  a  proper  motive,  and  is  an  additional  and  nroper  inducement  to 
them  to  be  vigilant  in  the  performance  of  a  duty  so  enjoined  upon  them ;  and 
the  government  is  not  only  interested  in  the  pecuniary  results  of  any  particular 
seizure,  in  an  amount  equal  to  that  of  the  revenue  officers,  but  each  case  of  suc- 
cessful seizure  prevents  a  great  many  attempts  to  evade  the  revenue  laws. 
There  is  no  doubt  danger  in  the  fact  that  officers  interested  in  the  results  of  a 
seizure,  and  having  power  to  make  it,  may  use  that  power  for  the  purpose  of 
extortion  and  practicing  upon  the  fears  of  exposure,  interruption  of  business,  and 
of  the  suspicion  which  will  attach  to  the  character  of  those  whose  property  may 
be  seized,  to  induce  such  parties  to  acknowledge  a  claim  which  they  would  not 
otherwise  admit,  and  which  they  would  contest  if  none  of  these  damaging  con- 
sequences followed  the  proceeding.  Suspicions  of  some  practice  of  this  kind 
during  my  own  administration  have  been  expressed  to  me,  and  I  have  not  1  een 
without  my  apprehensions  that  there  might  be  cause  for  those  suspicions.  How- 
ever, no  case  of  that  kind  has  occurred  to  my  knowledge.  All  the  cases  that 
have  come  to  my  knowledge  have  been  presented  with  such  statements  of  facts 
as  in  my  judgment  justified  the  proceeding  which  I  authorized  or  sanctioned. 

By  Mr.  Le  Blond : 

Question.  I  want  to  know  whether,  in  the  commencement  of  these  seizures, 
you  were  ever  consulted,  and  the  facts  connected  with  the  seizure  made  known 
to  you,  before  the  action  was  commenced.  I  include  in  my  question  the  past 
as  well  as  the  present — the  whole  period  since  you  have  been  in  the  custom- 
house.   In  w  hat  cases  have  you  been  consulted  ? 

Answer.  As  I  have  before  stated,  the  business  of  the  office  is  so  large,  and  the 
duties  are  so  numerous,  that  I  find  it  impossible  to  do  more  than  attend  to  the 
decision  of  such  doubtful  questions  as  arise  in  the  several  divisions,  and  which 
are  brought  to  me  for  consideration  by  the  heads  of  these  divisions,  or  by  those 
who,  doing  business  with  the  customs  officers,  appeal  to  me  from  their  decisions 
or  action.  That  is  the  case  at  the  present  time,  and  has  been  for  some  time  in 
respect  to  this  department  of  seizures.  I  assume,  where  the  cases  are  clear,,  and 
there  is  no  need  of  consultation  with  me  for  the  guidance  or  direction  of  officers, 
that  they  go  on  as  they  would  in  any  other  business.  I  will  remark  that  when 
any  person  has  a  complaint  that  the  seizure  is  an  improper  one,  I  always  encour- 
age the  presentation  of  that  complaint,  that  I  may  examine  the  case. 

Question.  Has  there  been  a  single  case  where  complaints  have  been  made, 
and  you  have  made  the  examination  that  convinced  you  that  the  seizure  was  an 
improper  one  ? 


3G 


NEW  YORK  CUSTOM  HOUSE. 


Answer.  There  have  been  some  cases  where  the  seizure  was  not  supported  by 
sufficient  evidence. 

Question.  In  any  of  these  cases  did  the  party  or  the  owners  of  the  property 
compromise  with  the  government  ? 

Answer.  Not  to  my  knowledge  or  belief. 

Question.  Was  there  in  either  of  these  cases  a  dismissal  without  the  court 
decreeing  that  there  was  probable  cause  ? 
Answer.  There  was  one. 

Question.  What  ease  was  thai  ?  0 
Answer.  The  Luline  sugar  case. 

Question.  When  that  case  was  commenced,  was  it  without  your  knowledge 
or  consent  ? 

Answer.  It  was  with  my  knowledge.  I  believed  the  ease  was  a  proper  one — 
that  the  facts  justified  the  seizure — and  I  still  believe  it. 

Question.  What  was  the  ground  of  seizure  in  the  ease  of  Butler  &  Pitkin  ? 

Answer.  I  do  not  know  that  my  information  about  the  facts  involved  in  that  ease 
is  very  perfect  or  complete,  but,  according  to  the  best  of  my  recollection,  so  far 
as  I  am  acquainted  with  the  facts,  the  grounds  of  the  seizure  were  these  :  Butler 
&  Pitkin  had  been  in  the  practice  of  omitting  for  a  long  time  some  eliarges  and 
expenses  of  importation  on  their  goods.  One  such  case  of  importation  was 
discovered  upon  which  these  facts  appeared.  I  depend  upon  my  recollection  of 
the  statements  made  to  me  at  the  time  in  the  case.  This  was  considered  *a  type 
of  the  way  in  which  they  did  their  business  of  importation,  and  the  discovery 
of  this  fact  involved  an  examination  of  their  books  for  the  purpose  of  recovering 
the  penalties  provided  for  all  such  cases.  I  believe  the  matter  was  settled, 
they  paying  the  appraised  value  of  the  goods. 

Question.  1  wish  to  ask  whether  this  was  not  the  point  in  controversy 
between  the  government  and  the  firms  of  Butler  &  Pitkin,  Middleton  &  Co., 
Calhoun  and  Wm.  H.  Lyon  &  Co. :  that  they  bought  goods  in  France  and  in 
England  upon  which  they  paid  five  per  cent,  commission,  and  that,  in  their 
report  to  the  custom-house,  they  reported  but  three  per  cent.,  leaving  two  per 
cent,  upon  which  they  would  escape  paying  duties;  and  1  wish  to  ask,  further, 
whether  it  was  not  brought  to  the  knowledge  of  the  custom-house  officers  that 
it  was  a  mere  mistake  of  the  law  upon  their  part  which  caused  them  to  do  it, 
they  supposing  that  the  government  was  only  entitled  to  duty  upon  three  per 
cent.,  or  whatever  amount  fixed  by  law  or  by  the  regulations  of  the  custom- 
house? 

Answer.  I  have  no  recollection  of  any  case  but  that  of  Butler  &  Pitkin.  In 
that  case,  as  the  facts  were  stated  to  me,  this  omission  of  a  portion  of  the  com- 
missions was  a  systematic  thing  in  violation  of  the  law.  Whether  they  intended 
to  defraud,  or  whether  they  intended  to  take  the  responsibility  of  construing 
the  law  for  themselves,  I  cannot  say;  but  in  either  case  it  appeared  that  the 
revenue  laws  had  been  evaded  and  ought  to  be  vindicated ;  that  the  practice, 
which  I  was  led  to  believe  prevailed  very  generally,  in  small  amounts,  it  is 
true,  bul  amounting  in  the  aggregate  to  a  very  large  sum,  should  be  suppressed; 
and  that,  whenever  we  found  a  case  where  we  could  prove  the  facts,  we  should 
make  an  example,  that  others  might  be  deterred  from  similar  practices.  At  the 
same  time,  it  seems  that  nothing  was  done  in  this  particular  case  but  to  apply 
the  law.  In  view  of  these  considerations,  the  proceeding  was  no  act  of  injustice 
to  these  parties.  I  understood  that  they  were  told  that  they  had  a  right 
to  contest  this  seizure;  that  if  they  did  not  choose  to  do  that,  they  might 
acknowledge  the  forfeiture,  and  then  appeal  to  the  Secretary  of  the  Treasury 
for  the  remission  of  the  forfeiture,  or  they  might  pay  the  appraised  value  of  the 
goods  invoiced. 

Question.  I  will  ask  you  whether  you  receive  a  part  of  the  income  of  your 
law  firm  1 


NEW  YORK  CUSTOM  HOUSE. 


37 


Answer.  I  will  say  that  nominally  I  do,  but  I  give  as  much  as  I  receive ;  I 
keep  my  place. 

Question.  I  will  ask  you,  further,  whether  your  law  partners  receive  any  part 
or  parcel  of  your  salary,  or  the  perquisites  of  your  office  1 

Answer.  They  do  not;  but  I  give  them  a  sum  that  answers  their  purposes 
to  retain  me  in  the  firm  and  they  not  lose  anything.  They  have  nothing  to  do 
with  my  accounts. 

Question.  An  annual  sum  do  you  wish  to  be  understood,  or  a  sum  in  the 
aggregate  ? 

Answer.  It  depends  somewhat  upon  my  receipts. 

Question.  I  confess  that  the  answer  which  you  give  me  seems  to  require 
that  I  should  ask  you  a  still  further  question,  and  if  it  turns  out  to  be  a 
purely  personal  matter  or  arrangement  in  which  the  receipts  of  tin-  custom- 
house do  not  constitute  a  part  of  the  business,  why  it  shall  be  stricken  out. 
About  what  amount  do  you  annually  pay  to  your  co-partners  ?  f 

Answer.  I  am  unable  to  answer  that  question  without  reference  to  my  books 
and  memoranda. 

Question.  How  much  money  do  you  receive  from  the  firm  of  Barney,  Butler 
&  Parsons  annually,  and  how  much  do  you  pay  said  firm  out  of  the  emolu- 
ments of  your  office'? 

(To  this  question  Mr.  Barney  demurred  answering,  claiming  it  to  be  foreign 
to  the  purposes  of  the  committee's  investigation,  and  a  needless  inquiry  into  his 
private  affairs.) 

(Thereupon  Mr.  Le  Blond  stated  that  he  was  informed  that  the  firm  of  Barney, 
Butler  &  Parsons  had  taken  fees  in  cases  against  the  government  growing  out 
of  seizures  made  by  the  custom-house  authorities,  and,  further,  that  said  firm 
had  an  interest  in  what  is  known  as  the  labor  contract  connected  with  the 
custom-house,  and  declared,  if  these  things  were  so,  his  question  was  pertinent, 
and  ought,  as  connected  with  public  interests,  to  be  answered.) 

(There  being  but  two  members  of  the  committee  present,  and  they  differing 
as  to  the  priority  of  time  in  which  the  questions  should  be  put  and  answers 
required,  the  further  examination  of  Mr.  Barney  was  deferred,  and  the  committee 
adjourned.) 

Evidence  of  George  IV.  Emhree. 

Washington,  January  22,  1864. 
George  W.  Embree,  a  witness,  was  sworn  and  examined  as  follows  : 

By  the  chairman : 

Question.  Are  you  connected  with  the  New  York  custom-house  ? 

Answer.  Yes,  sir;  I  have  been  deputy  collector  from  about  the  month  of 
May,  1861,  in  the  foreign  and  coastwise  bureau. 

Question.  State  to  the  committee  what  is  the  routine  of  business  in  your  di- 
vision, as  it  comes  under  your  particular  supervision. 

Answer.  The  name  of  my  bureau  indicates,  of  course,  the  leading  business  of 
my  division  ;  since  the  commencement  of  the  rebellion,  however,  there  has  been 
another  feature  in  the  business  of  the  bureau,  that  is,  in  reference  to  the  inter- 
nal intercourse,  as  well  as  foreign  and  coastwise  ;  I  mean  shipments  from  New 
York  to  the  west. 

Question.  Outside  of  the  rebellion  ? 

Answer.  Yes,  sir;  outside  and  inside.  The  business  of  my  bureau  is  the 
examination  of  the  manifests  of  all  vessels  entering  and  all  vessels  clearing. 
More  particularly  since  the  rebellion  commenced,  the  examination  has  been  of 
a  very  critical  character,  discriminating  between  what  is  contraband  and  what 


38 


NEW  YORK  CUSTOM  HOUSE. 


is  not,  and  in  ascertaining  what  is  suspicious  in  the  character  of  the  shipments  and 
the  character  of  the  parties  shipping. 

Question.  State  what  is  your  rule  in  determining  what  is  contraband — your 
general  knowledge,  and  your  special  instructions. 

Answer.  Our  special  instructions  have  not  at  all  times  covered  such  goods  as 
we  considered  of*  suspicious  character.  We  being  on  the  spot,  in  New  York,  and 
knowing  the  parties  shipping,  many  things  would  be  suspicious  to  us  which  the 
department  has  never  given  us  any  instructions  in  reference  to.  The  character 
of  the  parties  shipping  has  been  a  criterion  from  which  we  formed  a  judgment 
as  to  the  suspiciousness  of  a  cargo. 

Question.  State  in  detail  the  process  of  receiving  manifests  and  of  clearing 
vessels. 

Answer.  Before  the  rebellion  commenced  it  was  simply  necessary,  under  the 
law,  in  foreign  shipments,  lor  the  shipper  to  come  up  to  my  desk  and  make  oath 
to  his  particular  shipment,  which  is  called  a  shipper's  manifest.  That  mani- 
fest contains  in  ext.enso  all  the  different  articles  he  proposes  to  ship  on  board 
the  ship,  specifying  them  to  Liverpool  or  other  foreign  port.  That  shipper's 
manifest  is  put  on  tile  with  the  chief  clerk  of  my  bureau.  When  this  vessel 
comes  up  to  clear,  this  shipper's  manifest  is  compared  with  what  is  called  the 
ship's  manifest  or  clearances,  which  contains  in  detail,  as  well  as  the  aggregate, 
all  the  shipper's  clearances.  If  found  to  agree,  the  vessel  is  entitled  to  her  clear- 
ance. The  captain  comes  up  and  makes  oath  that  the  goods  manifested  on  his 
clearances  contain  a  just,  accurate,  and  true  account  of  all  the  goods  in  his  ves- 
sel, and  upon  that  he  gets  a  clearance. 

Question.  What  evidence  have  you  of  determining  that  there  is  no  collusion 
between  the  shipper  and  the  captain  I 

Answer.  Previous  to  the  breaking  out  of  the  rebellion  we  exercised  no  super- 
vision over  the  shipments  made.  We  allowed  the  shipper  to  send  the  goods 
down  to  the  vessel,  to  put  them  on  board,  and  when  the  time  came  we  compared 
his  manifests  with  the  general  clearance,  and  if  right,  we  allowed  the  vessel  to 
go.  Since  the  rebellion,  every  vessel  coming  into  the  port  of  New  Y'ork,  or 
leaving  it,  is  subject  to  suspicion.  We  have  officers  created  under  the  instruc- 
tions of  the  Secretary  of  the  Treasury,  special  aids,  whose  duty  it  is  to  keep 
every  vessel  corning  into  the  port,  and  every  vessel  arriving  and  clearing  under 
their  supervision  until  it  is  cleared. 

Question.  Is  that  in  reference  to  coastwise  or  foreign  trade? 

Answer.  It  covers  the  whole  port,  and  includes  internal  clearances  to  the  west, 
as  well  as  otherwise.  Every  package  or  invoice  of  goods  was  formerly  checked 
by  me  personally;  but  since  the  special  aids  have  learned  their  duties  nothing 
but  goods  of  a  suspicious  character  come  to  my  desk — suspicious  eitherfrom  the 
character  of  the  goods  or  the  character  of  the  shipper.  If  the  goods  are  directly 
contraband,  of  course  no  shipment  is  permitted,  and  the  thing  is  cut  off  at  the 
time  the  shipper  asks  a  clearance  for  his  goods.  If  they  are  deemed  to  be  of  a 
suspicion-  c  haracter,  an  examination  is  made  by  me  of  the  party  shipping,  his 
antecedents,  associations,  &c.  If  the  character  of  the  testimony  is  such  as  to 
lead  me  to  suppose  the  goods  are  to  be  used  directly  or  indirectly  for  aid  of  the 
rebellion,  I  forbid  the  shipment;  if  not,  I  write  over  the  face  of  the  shipper's 
manifest  or  his  invoice,  perhaps  before  he  has  made  out  his  manifest,  that  he 
may  ship  on  giving  bonds.  That  goes  into  the  bond-room,  the"  proper  bond  is 
given,  and  i-  returned  to  me  cheeked  with  two  checks — one  is  that  the  bond  is 
taken,  and  the  second  that  the  bond  is  registered.  Upon  that  the  goods  are 
allowed  a  clearance.  It  would  be  impossible  for  me  to  get  all  the  information 
needed  from  tlie  face  of  the  manifest,  and  in  order  to  be  satisfied  of  the  character 
of  the  shipment  I  require  a  report  every  day  from  the  surveyor. 

Question.  Please  indicate  generally  and  briefly  the  duties  of  the  surveyor  in 
connexion  with  clearances  of  vessels. 


NEW  YORK  CUSTOM  HOUSE. 


39 


Answer.  The  duty  of  the  surveyor  consists,  in  the  main,  in  visiting  every  ves- 
sel that  enters  the  port  of  New  York,  examining  the  manifests,  to  check,  to  place 
an  officer  on  board  all  foreign  vessels,  to  deliver  officers'  luggage  and  freight, 
and  to  keep  a  general  supervision  of  vessels  until  they  are  discharged.  Besides 
that,  his  duties  are  those  in  more  immediate  connexion  with  my  office — a  general 
supervision  of  every  vessel  in  the  port  of  New  York,  to  see  what  she  is  loading 
with,  or  what  she  is  discharging.  Sometimes  vessels  are  not  entered.  Coast- 
wise vessels,  having  no  foreign  cargo  on  board,  are  not  obliged  to  enter.  Still, 
those  custom-house  officers  go  on  board  and  report  what  they  are  taking  on  board 
and  what  they  are  discharging.  Every  day  a  list  of  these  ships  and  cargoes,  cVc, 
is  laid  before  me;  for  instance,  "  ship  York  ;  came  from  North  river;  loading  general 
cargo,  amongst  which  are  a  large  amount  of  drugs,  a  large  amount  of  cotton 
cards,  &c,"  or  liquors,  or  anything  which  happens  to  strike  the  attention  of  tin- 
officers,  and  which  would  form  an  exception  to  the  general  cargoes  of  such  ves- 
sels clearing  from  the  port.  The  ports  which  are  deemed  suspicious  by  us,  oi 
course,  become  an  object  of  our  special  care.  These  ports  would  be,  in  the  first 
place,  Matamoras  and  Vera  Cruz,  on  the  borders  of  Mexice.  More  especially. 
Matamoras  became  early  the  object  of  our  care,  and  it  was  in  reference  to  that 
place  we  first  took  our  bonds  on  shipments.  Then  came  the  West  Indies,  more 
especially  those  lying  on  our  seaboard;  then  Nassau  and  its  outports,  of  which 
there  are  some  six  or  seven  small  ports.  Then  came  the  Burmudas  ;  and  lastly, 
the  British  provinces.  We  have  demanded  bonds,  not  under  instructions  of  the 
department,  for  they  have  not  given  instructions  in  reference  to  these  bonds  on 
foreign  shipments.  Those  instructions  apply  more  particularly  to  the  coast- 
wise ports — those  opened  by  the  proclamation  of  the  President — New  Orleans. 
Beaufort,  Port  Royal,  and  Key  West.  In  reference  to  all  the  ports  I  have  in- 
dicated we  have  demanded  bonds.  As  we  would  find  goods  going  to  those  differ- 
ent ports  in  greater  or  less  quantities,  so  we  were  more  or  less  stringent  in 
reference  to  the  bonds  we  demanded.  The  system  of  bonding  was  arranged 
generally  between  the  collector  and  myself.  I  always  consulted  with  him  when 
any  new  necessity  arose,  and  he  would  indicate  the  line  of  policy  in  reference 
to  these  clearances. 

Question.  The  committee  would  like  to  know  what  the  circumstances  were 
which  attracted  the  attention  of  the  authorities  at  the  custom-house  that  im- 
proper shipments  were  made. 

Answer.  The  first  intimation  we  had  of  anything  of  that  sort  came  from  the 
fact  that  certain  blockade-runners  were  found  to  have  goods  on  board  which 
were  originally  cleared  at  some  one  of  our  ports — Philadelphia,  Boston,  Balti- 
more, or  New  York.  Then  letters  from  our  consuls  abroad,  especially  in  refer- 
ence to  Matamoras,  Havana,  Nassau,  Bermuda,  and  St.  John,  gave  us  informa- 
tion that  goods  cleared  from  our  ports  were  subsequently  transhipped  into  the 
Confederate  States. 

Question.  At  what  time  were  the  custom-house  officers  at  New  York  put  upon 
the  alert,  and  then  what  discoveries  were  made  in  reference  to  these  improper 
shipments  1 

Answer.  It  would  be  impossible  to  indicate  any  particular  time.  As  the 
emergencies  arose  we  became  more  suspicious,  but  I  should  say  that  eighteen  or 
twenty  months  since  we  were  more  particularly  first  attracted  by  this  matter. 

Question.  That  was  when  Mr.  Stanton  was  in  office  ? 

Answer.  Mr.  Stanton  was  in  the  bond  desk  at  the  time.  If  you  refer  to  any 
irregularity  in  that  bureau,  those  occurred  much  later. 

Question.  My  question  was  general  as  to  the  time  when  any  of  the  attache's 
of  the  custom-house  were  apprised  that  there  were  suspicious  circumstances  in 
reference  to  improper  shipments  so  as  to  put  them  upon  their  guard. 

Answer.  Eighteen  or  twenty  months  since  we  began  to  carry  this  bond  sys- 
tem into  vigorous  execution,  in  reference  to  suspicious  vessels. 


40 


NEW   YORK  CUSTOM  HOUSE. 


Question.  After  that  you  were  more  particular  in  reference  to  the  character 
>f  the  shippers  and  of  the  obligors  and  sureties  upon  the  bonds? 

Answer.  Yes,  sir.  When  the  developments  in  reference  to  the  bond-room 
were  made,  it  was  found  that  the  character  of  the  bonds  differed  from  such  as 
Collector  Barney  requested  Mr.  Stanton  to  take.  I  think  that  discovery  was 
made  after  the  difficulty  with  Mr.  Stanton  first  occurred. 

Question.  State  what  the  bonds  ought  to  have  required,  according  to  the  in- 
structions of  the  collector. 

Answer.  The  bond  required  by  the  collector  in  order  to  entitle  it  to  be  can- 
celled was  to  provide  that  the  goods  should  be  consumed  at  the  point  of  desti- 
nation, and  not  be  transhipped  elsewhere  in  order  to  aid  and  comfort  the  enemy. 
The  character  of  the  bond  taken  was  little  more  than  a  running  certificate. 

Question.  Was  it  discretionary  with  Mr.  Stanton,  or  whoever  had  charge  of 
that  matter,  to  accept  such  bond  as  he  thought  proper? 

Answer.  Yes,  sir;  except  that  the  instructions  of  the  collector  and  of  the  de- 
partment were,  that  the  bonds  should  be  of  a  satisfactory  character. 

Question.  Was  Mr.  Stanton  to  judge  of  what  was  satisfactory,  or  did  the  col- 
lector give  instructions  as  to  what  kind  of  bonds  would  be  satisfactory  ? 

Answer.  I  cannot  say  what  the  specific  instructions  to  Mr.  Stanton  were.  I 
!  ways  supposed  they  were  substantially  correct,  otherwise  1  should  have  moved 
in  the  matter.  Indeed,  I  did  say  to  the  assistant  collector,  on  one  or  two  occa- 
sions, that  I  thought  the  bonds  were  not  made  as  strict  as  they  ought  to  be.  I 
speak  in  reference  to  these  matters  so  far  only  as  my  own  knowledge  extends. 
1  do  not  know  what  passed  between  the  collector  and  Mr.  Stanton.  I  know, 
from  incidental  conversations  between  the  collector  and  myself,  that  he  supposed 
that  everything  was  going  on  properly  in  the  bond-room.  It  would  be  impossi- 
ble for  the  collector  to  exercise  personal  supervision  over  the  different  bureaus. 

Question.  The  bonds  really  taken  only  required  that  the  goods  should  be 
landed  at  the  port  for  which  the  vessel  cleared  ? 

Answer.  Yes,  sir.  The  matter  of  cancellation  did  not  come  under  my  charge 
at  all,  and  the  most  I  knew  about  that  is  mere  matter  of  hearsay  ;  but  some  of 
the  certificates  of  concellation  would  occasionally  be  brought  to  my  desk,  and 
upon  the  certificate  the  bond  would  be  cancelled  by  me.  I  have  seen  some  can- 
cellations of  a  very  satisfactory  character,  as,  for  example,  where  the  consul 
certified  to  the  landing  of  the  goods,  and  to  their  having  been  disposed  of  to 
parties  not  in  sympathy  with  the  rebellion ;  or,  if  to  American  citizens,  to  those 
who  were  loyal.  But  those  cases  were  exceptions.  I  think  Mr.  Barney  was 
egregiously  deceived,  and  was  much  disappointed  when  he  found  out  that  tlx1 
bonds  were  not  of  the  satisfactory  character  he  had  indicated  to  Mr.  Stanton. 

Question.  When  was  it  discovered  that  these  bonds  were  not  of  the  character 
they  should  have  been? 

Answer.  Within  a  few  months  past. 

Question.  You  knew  nothing  of  it  until  after  this  difficulty  with  Stanton  ? 
Answer.  Nothing;  that  developed  the  whole  irregularity  of  that  bureau. 

By  Mr.  Broomall : 

Question.  In  giving  the  details  of  your  bureau  you  spoke  of  taking  bonds  and 
registering  them.    Was  that  registering  done  by  the  same  officer? 

Answer.  No,  sir ;  the  checking  of  the  bond  was  made  by  the  deputy  collector; 
but  the  registry  was  made  by  the  chief  clerk.  It  is  proper,  however,  that  I 
should  qualify  that.  That  plan  was  adopted  after  suspicions  were  entertained 
in  reference  to  the  bond-room.  Previous  to  that  we  had  simply  a  check  that 
the  bond  had  been  taken.  That  was  satisfactory  evidence  to  me  that  the  matter 
was  right.  It  was  enough  for  me  to  know  that  the  bond  had  been  properly 
taken.    The  registering  was  a  matter  which  belonged  to  the  office  itself. 


NEW  YORK  CUSTOM  HOUSE. 


41 


Question.  Was  this  bond  executed  by  the  parties  alone,  or  by  the  shipper 
alone  ? 

Answer.  By  two  sureties. 

Question.  By  whom  was  the  surety  approved  I 
Answer.  By  the  deputy  collector. 
Question.  What  deputy? 

Answer.  By  Mr.  Stanton,  while  he  had  charge  of  it,  and  always  by  the 
deputy  having  charge  of  that  matter.  In  the  absence  of  the  deputy,  sometimes 
it  was  done  by  the  chief  clerk.    Mr.  Waddell  was  the  chief  clerk  there. 

Question.  Do  you  know  upon  what  evidence  the  sureties  were  approved  ? 

Answer.  Upon  quite  loose  evidence,  I  should  think,  at  one  time,  as  late  de- 
velopments prove.    Now  they  are  more  particular. 

By  Mr.  Rollins : 

Question.  What  is  the  rule  of  the  department  in  reference  to  it? 

Answer.  No  specific  rule  has  ever  been  laid  down  to  us  with  reference  to 
taking  these  bends,  beyond  the  fact  that  they  should  be  satisfactory  to  the  col- 
lector. 

Question.  In  what  amount  is  the  bond  given  1 
Answer.  In  double  the  amount  of  the  shipment. 

By  Mr.  Broomall : 

Question.  If  I  understand  you,  then,  the  goodness  of  the  bond  depends  upon 
the  decision  of  a  single  officer  in  respect  to  the  sureties  and  the  parties  signing 
it.  and  that  no  other  officer  oversees  it? 

Answer.  Yes,  sir,  up  to  the  time  of  the  difficulty  that  was  the  case.  Collector 
Barney  has  instituted  a  new  system  now  The  present  system  is  such  as  to 
make  it  almost  impossible  to  have  the  bonds  other  than  satisfactory.  For  ex- 
ample, I  think  Mr.  Barney  obliges  the  deputy  collector  in  charge  of  that  room 
to  make  out  a  digest  of  the  bonds  taken  each  day,  and  of  the  parties  and  sureties. 
That  is  submitted  to  the  assistant  collector,  and  subsequently  it  becomes  a 
matter  of  file  in  the  collector's  office. 

By  Mr.  Le  Blond  : 

Question.  Yrou  have  a  variety  of  persons  upon  those  bonds  as  sureties.  What 
means  does  the  department  resort  to  to  ascertain  the  solvency  of  the  parties  going 
upon  the  bonds  ? 

Answer.  It  would  be  almost  impossible  for  me  to  say  what  course  is  pursued 
by  the  deputy  collector. 

By  the  chairman: 

Question.  Have  you  a  fixed  salary? 
Answer.  Yes,  sir. 

Question.  Have  you  any  other  compensation,  in  any  shape  whatever,  in  con- 
nexion with  the  custom-house,  except  your  salary? 

Answer.  None  at  all,  except  in  common  with  all  my  brother  officers,  who 
occasionally  find  mysterious  packages  at  their  houses.  This  is  not  a  matter  of 
frequent  occurrence. 

Question.  I  will  read  to  you  the  resolution  of  the  House  of  Representatives, 
referring  this  subject  to  this  committee:  "Resolved,  That  the  charges  recently 
made  of  official  misconduct  in  the  New  York  custom-house,  in  regard  to  alleged 
shipments  of  contraband  goods  and  supplies,  and  all  matters  of  alleged  miscon- 
duct in  the  management  of  the  affairs  of  the  custom-house  at  New  York,  be  re- 
ferred to  the  Committee  on  Public  Expenditures."     Having  heard  the  reso- 


42 


NEW  YORK  CUSTOM  IIOlTSE. 


lution  read,  I  ask  you  whether  you  have  any  other  knowledge  of  facts,  touching 
the  subject-matter  of  that  resolution,  which  you  can  communicate  to  this  com- 
mittee ? 

Answer.  In  reference  to  what  I  suppose  you  consider  the  most  important 
matter — that  is,  the  bonds — I  cannot  give  you  any  more  information. 

Question.  Had  you  anything  to  do  with  the  examination  of  those  bonds 
after  the  trouble  with  Stanton  occurred? 

Answer.  No,  sir.  I  can  only  say  this  in  reference  to  the  bonds  :  We  have 
carried  out  lately  a  pretty  rigorous  system,  as  you  must  be  aware.  We  have 
frequently  demanded  bonds  which  have  been  made  subjects  of  appeal  first  to 
the  collector  from  me,  and  subsequently  to  the  department  at  Washington  ;  and 
1  think  the  department  in  two  or  three  instances  have  allowed  goods  to  go 
which  we  had  peremptorily  refused  a  shipment  of. 

Question.  You  stated  some  time  since,  that  from  your  own  general  knowledge, 
and  the  instructions  of  the  department,  you  knew  what  were  contraband  or  sus- 
picious goods>.  I  wish  to  inquire  whether  the  shipment  of  that  character  or 
class  of  goods  to  suspected  ports — Halifax,  Nassau,  &c. — is  increasing  or 
diminishing,  and  whether  it  is  still  attempted  to  be  carried  on  from  New  York  ? 

Answer.  I  think  in  each  case  the  shipments  have  lessened,  and  that  to  the 
port  of  Nassau  lias  dwindled  down  to  the  mere  ordinary  shipment  of  personal 
matters  and  small  merchandise,  to  be  disposed  of  at  Nassau  or  its  outports,  of 
which  there  are  five  or  six  in  the  Bahamas,  most  of  which  depend  upon  Nassau 
for  supplies. 

Question.  You,  in  fact,  by  your  rigor,  have  destroyed  all  illegitimate  or  con- 
traband trade  \ 
Answer.  Yes,  sir. 

Evidence  of  Wm.  C.  H.  Waddell. 

Washington,  January  28,  1864. 
Wm.  C.  H.  Waddell,  a  witness,  was  sworn  and  examined  as  follows : 

By  the  chairman: 
Question.  Are  you  connected  with  the  New  York  custom-house  ? 
Answer.  1  am. 
Question.  In  what  capacity  ? 
Answer.  As  chief  clerk  of  the  ninth  bureau. 
Question.  Is  that  the  bond  division  ? 

Answer.  The  taking  of  bonds  is  in  that  division  altogether. 
Question.  How  long  have  you  been  there  ? 

Answer.  The  division  was  organized  two  or  two  and  a  half  years  ago.  I 
was  previous  to  that  in  the  custom-house,  but  that  division  was  not  organized 
then  as  a  division  by  that  name.  It  was  organized  on  the  coining  in  of  Mr. 
Stanton,  and  I  was  then  nominated  chief  clerk. 

Question.  State  briefly  the  routine  of  business  in  that  division,  pertaining 
particularly  to  the  taking  of  the  bonds  spoken  of. 

Answer.  .Mr.  II.  B.  Stanton,  deputy  of  the  ninth  division,  had,  at  the  time  of 
the  organization  of  the  division,  the  charge  of  all  seizures  under  the  revenue 
laws — all  cases  in  rem.  He  also  took  the  bonds  in  the  cases  referred  to  under 
the  recent  acts  of  Congress,  for  intercourse  with  the  open  ports  of  the  Confede- 
rate States,  of  goods  which  it  was  supposed  might  go  to  aid  the  rebellion. 
Those  two  duties  were  imposed  upon  that  division. 

Question.  What  was  the  salary  of  Mr.  Stanton? 

Answer.  1  think  it  was  $2,500. 

Question.  What  proportion  of  the  seizures,  if  any,  did  he  have  ? 
Answer.  None  whatever,  that  I  know  of. 


NEW  YORK  CUSTOM  HOUSE. 


43 


Question.  Were  those  bonds  made  out  in  your  division  by  yourself'? 

Answer.  No,  sir. 

Question.  Who  made  them  out  ? 

Answer.  Mr.  Stanton  took  special  charge  of  all  matters  relating  to  bonds, 
and  wished  me  to  give  my  attention  more  especially  to  matters  relating  to 
seizures. 

By  Mr.  Rollins  : 

Question.  When  you  commenced  the  business  of  taking  bonds  according  to 
the  act  of  Congress,  did  Mr.  Stanton  then  so  divide  the  business  of  his  depart- 
ment as  to  give  you  charge  of  the  matters  relating  to  seizures,  and  to  retain  to 
himself  all  matters  relating  to  bonds  ? 

Answer.  He  did. 

By  the  chairman : 

Question.  Did  Mr.  Stanton  prescribe  the  form  of  the  bond  ? 

Answer.  I  know  that  a  form  of  a  bond  had  been  submitted  to  the  department, 
and  was  approved  by  them.  The  form  of  the  bonds  taken  for  Nassau,  Mata- 
moras,  &c.,  did  get  the  approbation  of  the  department  subsequently.  Mr.  Stanton 
took  this  matter  specially  in  his  charge.  There  were  two  clerks  besides  myself 
in  the  division — J.  Cady  Stanton,  son  of  H.  B.  Stanton,  and  Mr.  Scott.  These 
clerks  were  engaged  in  the  clerical  matters  relating  to  the  bonds,  such  as  filling 
them  up,  &c.  Mr.  H.  B.  Stanton  took  upon  himself  the  actual  taking  of  the 
bonds,  the  approval  of  the  sureties,  and  all  matters  except  tlie  mere  filling  them 
up  by  those  clerks.    I  was  excluded  from  that  portion  of  the  business. 

By  Mr.  Broomall : 

Question.  Was  there  anything  in  the  management  of  that  department  while 
Mr.  Stanton  was  there  which  attracted  your  attention  at  any  time  as  secretive 
or  remarkable  ? 

Answer.  The  only  thing  which  struck  me  as  remarkable  was  that,  as  chief 
clerk  of  that  division,  I  was  excluded  from  all  business  pertaining  to  that  mat- 
ter.   It  first  struck  me  so,  but  my  self-respect  soon  laid  that  aside. 

Question.  Was  there  anything  peculiar  in  the  way  in  which  the  business 
was  carried  on  which  you  observed  ? 

Answer.  In  the  present  new  custom-house  we  had  two  attached  rooms  as- 
signed to  that  division.  The  taking  of  bonds  had  been  begun  before  that  time, 
and  while  we  were  in  the  old  custom-house.  In  the  old  custom-house  there 
were  two  rooms  at  that  time;  one  quite  small,  and  the  other  was  of  some  size 
In  the  small  room  was  A.  M.  Palmer,  who  had  the  business  imposed  upon  him 
which  particularly  relates  to  appointments — business  which  he  had  had  long 
before,  and  which  he  retained.  When  Mr.  Stanton  took  his  place  as  deputy  of 
the  ninth  division,  the  rooms  he  selected  to  locate  himself  in  were  the  two  rooms 
which  Palmer  had  the  use  of,  in  what  I  might  call  the  appointment  bureau. 
I  was  then  detached  to  what  is  called  the  seizure  bureau,  under  H.  Oargill, 
deputy  collector,  and  Geo.  D.  Bayard,  who  was  in  the  same  position  under  the 
former  administration  of  Schell  that  Palmer  occupied  under  the  present  admin- 
istration of  Barney.  That  was  called  the  seizure  bureau.  It  was  located  in 
the  basement  story  of  the  present  sub-treasury  building.  When  Mr.  Stanton 
came  in  he  selected  his  place  in  the  second  story  of  the  same  building,  in  a 
room  that  Palmer  occupied,  saying  that  he  did  not  like  the  basement.  The 
bureau  was  then  partially  divided  for  the  time,  1  remaining  below,  and  Mr. 
Stanton  in  the  second  story,  in  the  room  occupied  by  Palmer.  He  said  after  a 
while  that  it  was  inconvenient  to  be  separated  in  that  way,  and  said  I  could  be 
very  well  accommodated  up  there,  and  wished  I  would  come  up.  I  preferred 
the  basement,  but,  as  it  was  a  matter  of  no  consequence,  I  said  1  would  come  up. 
He  said  I  could  have  a  place  where  I  desired.    I  said  I  would  prefer  the  large 


44 


NEW  YORK  CUSTOM  HOUSE. 


room,  which  was  really  the  ante-room  to  the  small  room,  in  which  applicants  ' 
for  office  thronged  in  considerable  numbers.  But  still,  the  small  room  was  so 
very  small,  that  1  preferred  to  be  ID  the  other  room.  Mr.  Stanton  had  his  desk 
in  the  small  room  with  Mr.  Palmer.  The  small  room  was  not  more  than  eight 
or  ten  feet  square.  Then  on  the  other  side  of  this  small  room,  other  than  that 
which  led  into  the  ante-room,  was  a  door  which  led  out  into  the  large  gallery 
of  the  rotundo  ;  that  is,  there  was  an  access  to  the  small  room  without  coining 
through  the  large  room.  Mr.  Stanton's  son,  by  Mr.  Stanton's  direction,  had  a 
desk  placed  on  that  gallery  alongside  of  the  door  which  led  from  the  small 
room  on  to  the  gallery. 

Question.  What  was  the  official  relation  of  young  Stanton  to  his  father? 

Answer.  He  held  a  clerkship  in  the  custom-house  under  his  father.  I  think 
his  pay  was  attached  to  some  other  branch  of  the  department,  but  his  duties 
were  in  that  room.  The  bonds,  therefore,  were  attended  to  by  J.  Cady  Stan- 
ton, the  son,  and  by  Mr.  Stanton  and  Mr.  Palmer — sometimes  by  Mr.  Palmer, 
though  Mr.  Palmer's  duties  were  of  another  class  altogether.  I  moved  up-stairs 
and  took  my  seat  at  a  desk  in  this  other  room. 

After  we  moved  up  to  the  other  building,  the  present  custom-house,  we  had 
two  rooms  given  us  on  Wall  street,  on  the  same  floor  the  collector  was  on ;  both 
of  them  had  doors  on  to  the  gallery.  Mr.  Palmer  had  a  desk  in  the  room  with 
Mr.  Stanton  ;  those  two  were  in  one  room.  Mr.  Stanton  appropriated  the  east 
room  to  myself  and  to  J.  Cady  Stanton.  There  were  glass  folding-doors 
between  the  two  rooms.  Mr.  Stanton  and  Mr.  Palmer  occupied  the  west  room. 
The  doors  which  led  from  their  room  on  to  the  galleries  were  entirely  closed, 
and  the  whole  entry  to  that  room  was  through  the  east  room.  I  said  that  would 
make  that  room  the  entry  room,  and  it  would  be  crowded  all  through.  He  said 
it  would  be  more  convenient,  to  have  it  so,  and  that  it  would  not  answer  at  all 
to  have  the  crowd  through  his  room.  It  was  accordingly  so  arranged,  and  an 
iron  railing  was  ordered  to  be  put  through  the  middle  of  the  room  I  occupied, 
in  order  to  prevent  outside  pressure  against  my  desk,  and  a  jog  was  made  in  the 
railing,  so  as  to  allow  it  to  answer  as  an  ante-room  to  the  west  room  occupied 
by  Mr.  Stanton  and  Mr.  Palmer.  This  particularity  of  statement  is  needful  to 
show  how  little  opportunity  I  had  to  know  anything  about  the  business  of  that 
room. 

This  arrangement  of  the  rooms,  Palmer  said,  was  necessary  on  account  of  the 
great  crowd  which  was  wa  ting  upon  him  in  reference  to  the  matters  he  had  in 
charge.  Mr.  Stanton  said  that  would  be  lessened  in  a  short  time;  that  in  a 
short  time  that  crowd  would  be  lessened,  and  the  inconvenience  would  of  course 
be  equally  lessened.  At  that  time  the  matters  relating  to  seizures  were  more 
particularly  placed  under  my  care,  occasionally,  of  course,  referring  to  Mr. 
Stanton,  as  head  of  the  division.  The  matter  of  bonds  was  attended  to  solely 
by  Mr.  Stanton.  At  one  time,  when  Mr.  Stanton  went  away  from  the  city,  he 
told  me  that  Mr.  Smalley  would  take  the  acknowledgment  of  bonds  while  he 
was  absent,  as  he  was  a  notary. 

Question.  Was  Mr.  Smalley  attached  to  that  division  1 

Answer.  'No,  sir. 

Question.  What  was  Smalley  at  that  time? 

Answer.  1  understood  that  he  was  attached  to  the  custom-house,  but  I  do  not 
know  in  what  way  ;  he  was  very  intimate  with  Mr.  Palmer. 
Question.  Was  Palmer  a  notary  public  too  1 
Answer.  Yes,  sir. 

Question.  Have  you  any  explanation  to  give  why  Stanton  specified  Mr. 
Smalley  ] 

Answer.  No,  sir. 


NEW  YORK  CUSTOM  HOUSE. 


45 


By  Mr.  Broomall : 

Question.  During  his  absence  the  business  was  not  put  in  your  hand?,  as  it 
ought  to  have  been  ? 

Answer.  No,  sir ;  not  at  all. 

Question.  Was  anything  said  about  it  at  all  ? 

Answer.  No,  sir. 

Question.  You  did  not  think  it  was  remarkable? 

Answer.  Yes,  sir ;  1  thought  it  was  remarkable  that  I,  being  next  in  official 
position,  should  not  act  when  he  was  absent.  I  must  say  1  did  nol  think  at  tin 
time  there  was  anything  wrong  going  on.  It  struck  me  at  the  time  as  peculiar 
that  Stanton  should  not  repose  the  business  in  me,  as  his  chief  clerk,  during  his 
absence. 

By  the  chairman  : 

Question.  Do  you  know  whether  Smalley  was  directed  to  give  a  detailed 
report  to  Mr.  Palmer,  as  the  debenture  clerk  ? 
Answer.  I  do  not  know  anything  about  it. 

Question.  When  did  this  change  from  the  old  building  to  the  new  one  take 
place  ? 

Answer.  In  December,  1862. 

Question.  Do  you  know  of  any  fee,  or  perquisite,  or  charge  for  the  making 
out  of  these  bonds  ? 

Answer.  I  never  heard  of  any  such  thing  until  I  saw  it  in  the  papers. 

Question.  After  Mr.  Stanton  left  the  office,  who  took  charge  of  it? 

Answer.  On  his  being  suspected  or  suspended,  or  whatever  was  the  case,  the 
collector  directed  Hanscom,  the  deputy  of  the  tenth  division,  to  take  charge  of 
the  ninth  division,  and  to  examine  into  its  then  present  status. 

Question.  Did  you  have  anything  to  do  with  that  examination  ? 

Answer.  Nothing  whatever. 

Question.  Have  you  any  further  knowledge  pertaining  to  the  execution  <>f 
these  bonds  which  you  can  give  to  the  committee  ? 

Answer.  When  Mr.  Hanscom  came  in  and  took  charge  of  the  ninth  division — 
the  tenth  division  having  been  organized  out  of  the  ninth — he  took  the  matters 
relating  to  seizures  out  of  the  ninth  division,  except  seizures  under  the  act  of 
July  13,  1861,  Avhich,  under  the  construction  of  the  collector's  order,  remained  in 
the  ninth  division.  Mr.  Stanton  then  said  to  me  I  should  still  keep  charge  of 
the  seizures  there,  and  from  that  time  my  business  was  very  light,  as  all  foreign 
business  was  taken  off,  and  I.  had  only  the  business  under  the  act  of  1861. 

On  the  organization  of  the  ninth  division  under  Mr.  Hanscom,  Mr.  Palmer  was 
made  chief  clerk  of  the  tenth  division,  but  he  still  retained  the  duties  which  had 
formerly  been  imposed  on  him  in  reference  to  the  matter  of  appointments.  Mi- 
lliner told  me  he  did  not  attend  to  the  special  duties  of  the  tenth  division.  He 
Avas  so  much  occupied  with  other  matters  which  he  had  on  hand,  that  he  was 
unable  to  give  it  that  attention  which  it  required. 

Mr.  Hanscom,  assuming  charge  of  the  ninth  division,  said  that  its  duties,  and 
an  examination  of  the  condition  of  that  division,  would  throw  a  very  large 
amount  of  labor  on  him  for  a  time  ;  that  he  did  not  see  how  he  could  give  atten- 
tion to  the  current  taking  of  bonds  in  connexion  with  the  other  duties  of  the 
ninth  and  tenth  divisions,  and  said  he  wished  I  would  take  charge  of  the  matter 
of  bonds,  and  carry  it  currently  on,  while  he  was  attending  to  the  examination 
of  the  prior  acts  of  the  ninth  division,  and  the  matter  of  seizures,  which  he 
legitimately  had  under  his  charge  as  head  of  the  tenth  division. 

I  then  took  charge  of  the  taking  of  bonds,  and  I  immediately  adopted  a  course 
which  I  had  frequently  suggested  to  Mr.  Stanton  should  lie  done:  that  we 
should  take  from  parties  who  were  sureties  upon  a  bond,  an  affidavit  of  their 
sufficiency.    That  was  taken  in  some  comparatively  few  instances  by  Mr. 


46 


NEW   YORK  CUSTOM  HOUSE 


Stanton;  but  he  said  he  would  examine  them  orally,  which  would  answer  the 
same  purpose*.  It  struck  me  it  would  be  better  to  have  the  examination 
attached  to  the  bond.  Therefore  the  parties  were  sworn  before  a  notary  public 
outside  as  to  their  sufficiency — that  is,  that  they  were  worth  the  amount  of  the 
bond,  over  and  above  all  debts  and  liabilities  ;  and,  further,  if  a  party  was  pos- 
sessed of  real  estate,  he  was  to  state  where  it  was  situated,  what  it  was  worth 
over  all  incumbrance-  ;  and  the  affidavits  were  attached  to  the  bonds.  That  is 
still  continued,  of  course;  and  in  addition  to  that  the  collector  has  recently  deter- 
mined— and  that  is  now  the  rule — that  on  all  bonds  of  goods  shipped  to  the 
British  provinces  and  Matainoras,  the  sureties  are  required  to  be  worth  each  the 
amount  of  the  bend  over  and  above  their  liabilities,  and  also  to  possess  real 
estate  within  the  southern  district  of  New  York. 

By  Mr.  Rollins  : 

Question.  Do  yon  know  anything  in  relation  to  the  abstraction  of  bonds,  or 
of  the  receiving  offers  of  money  for  the  improper  execution  of  bonds? 

Answer.  I  know  nothing  of  the  abstraction  of  bonds  ;  and  nothing  of  money 
being  received,  except  by  Stanton,  Smailey,  and  Palmer  as  notaries  public. 

By  Mr.  Le  Blond: 

Question.  Who  appoints  the  heads  of  these  divisions  in  the  collector's  office, 
and  the  subordinate  clerks  in  the  several  bureaus  thereof? 

Answer.  The  collector  himself,  Mr.  Barney.  Recently  the  collector  has  ap- 
pointed Mr.  Cornelius  Runkle  as  deputy  of  the  ninth  division,  and  directed  that 
the  bonds  be  taken  in  the  ninth  division,  and  that  daily  the  bonds  should  be 
handed  over  to  Mr.  Hanscom,  deputy  of  the  tenth  division,  who  is  to  make  a  daily 
report  thereof  to  the  collector. 

Question.  When  Mr.  H.  B.  Stanton  was  engaged  in  the  taking  of  bonds  in 
the  room  which  he  occupied — on  his  leaving  that  room  temporarily  for  lunch 
or  otherwise,  did  you  have  charge  of  his  room  and  papers? 

Answer.  No.  lie  generally  expressed  his  wishes  and  directions  that  his 
papers  should  be  left  untouched  till  he  returned,  and  should  not  be  interfered 
with  ;  and  his  directions  were  always  thus  complied  "with. 

Evidence  of  Albert  Hanscom. 

Washington,  February  2,  1S64. 
Albert  Hanscom,  a  witness,  sworn  and  examined  as  follows : 

By  the  chairman : 
Question.  Are  you  connected  with  the  Xew  York  custom-house? 
Answer.  Yes,  sir;  as  deputy  collector. 
Question.  How  long  have  you  been  so  connected? 
Answer.  Since  last  May. 

Question.  What  bureau  or  department  have  you  had  charge  of? 

Answer.  The  seizure  bureau,  technically  so  called.  That  bureau  takes  cog- 
nizance of  all  violations  of  the  revenue  laws,  and  the  prosecutions  of  all  suits 
brought  by  the  United  States  against  parties.  My  division  was  known  as 
No.  10. 

Question.  Had  von  charge  of  the  bond  department? 

Answer.  I  had  charge  of  that  department  from  the  28th  of  October  last  until 
the  31st  of  December. 

Question.  What  were  the  duties  devolving  upon  you  previous  to  that? 

Answer.  I  had  charge  of  all  matters  pertaining  to  a  violation  of  the  revenue 
laws,  and  all  seizures  of  merchandise  for  violation  of  those  laws,  and  all  pro- 
secutions for  lines,  penalties,  and  forfeitures.    After  Mr  .Stanton  was  suspended, 


NEW  YORK  CUSTOM  HOUSE. 


47 


I  was  temporarily  in  charge  of  the  ninth  division,  which  had  charge  of  the  bonds. 
I  had  botli  divisions  upon  my  hands  then,  from  the  28th  of  ( October  to  the  31st 
of  December. 

Question.  On  taking  charge  of  the  bond  bureau,  did  you  make  an  examina- 
tion of  it  1 

Answer.  Yes,  sir. 

Question.  In  what  condition  did  you  find  it  ? 

Answer.  After  making  an  examination,  I  made  a  short  report  to  the  collector. 
Perhaps  the  shortest  way  of  answering  the  question  would  be  to  read  that  report. 
The  report  was  read  as  follows : 

Custom-House,  New  York, 

January,  1864. 

Sir  :  I  have  the  honor  to  report  that,  on  the  2Sth  of  October,  in  obedience  to 
your  order  of  that  date,  I  took  charge  of  the  rooms  assigned  to  the  ninth  division 
of  the  business  of  your  office,  and,  until  the  appointment  of  C.  A.  Runkle,  esq., 
on  the  31st  ultimo,  discharged  the  duties  of  a  deputy  collector  of  that  division, 
in  addition  to  those  of  the  tenth  division,  to  which  1  was  assigned  in  May  last. 
The  principal  business  assigned  to  the  ninth  division  was  the  reception,  custody, 
and  cancellation  of  bonds  required  by  acts  and  regulations  relating  to  commer- 
cial intercourse  with  States  declared  in  insurrection,  and  to  prevent  supplies 
ostensibly  destined  for  foreign  neutral  ports  from  reaching  insurgents  against 
the  United  States,  the  prosecution  and  management  of  seizures  under  the  acts 
of  July  13,  1861,  and  May  20,  1862,  and  the  defence  of  suits  instituted  against 
the  collector  for  recovery  of  duties  alleged  to  have  been  illegally  exacted,  or  for 
any  other  cause.  Upon  assuming  charge  of  this  division,  an  examination  of  the 
bonds,  4,971  in  number,  according  to  the  records,  was  commenced,  under  my 
supervision  and  direction,  by  Mr.  F.  J.  Phillips  and  Mr.  Theron  C.  Leland.  But 
little  progress  was  made  for  the  first  two  weeks,  as  Mr.  Phillips,  the  only  clerk 
in  my  own  division,  was  employed  a  great  portion  of  the  time  by  Mr.  Palmer, 
and  the  force  of  the  ninth  division  was  reduced  by  the  absence  of  a  deputy  col- 
lector and  one  clerk.  All  the  bonds  recorded  which  could  be  found  were  scru- 
tinized, and  a  particular  report  thereof  made  in  writing  to  the  Solicitor  of  the 
Treasury  on  the  1st  of  December,  a  copy  of  which  you  will  receive  herewith. 
My  own  labors  were  directed  to  a  supervision  of  the  two  divisions  carried  on 
with  reduced  force,  and  especially  to  the  investigation  of  alleged  shipments  from 
this  port  for  blockade  runners,  and  the  preparation  for  trial  and  attendance 
thereon  of  several  important  seizures  connected  with  this  illegal  traffic,  prosecu- 
tions for  infractions  of  the  regulations  respecting  commercial  intercourse  with  the 
opened  ports,  and  ordinary  revenue  seizures  which  were  set  down  for  December. 
I  was  obliged,  therefore,  to  intrust  to  Mr.  Waddell,  the  chief  clerk  of  the  ninth 
division,  the  duty  of  receiving  bonds,  which  lie  performed,  referring  to  me  such 
questions  as  arose  during  the  period  the  business  was  under  my  charge. 

From  the  report  referred  to,  you  will  perceive  that  124  bonds  are  without  sureties; 
72  without  seals;  89  improperly  executed  with  respect  to  signature  ;  21  wherein 
principals  and  sureties  recited  have  not  both  signed ;  4  without  revenue  stamps ; 
21  are  missing,  (of  the  recorded  bonds  ;)  876  have  been  cancelled  by  consular, 
collectors'  and  provost  marshals'  certificates;  141  by  a  statement  in  writing  on 
the  bond  by  the  deputy  collector  in  charge  that  a  verbal  declaration  had  been 
made  sufficient  for  that  purpose;  and  19  by  the  word  "cancelled"  written 
thereon,  with  the  signature  of  D.  Cady  Stanton,  a  clerk  in  the  ninth  division. 
The  reception,  custody,  and  cancellation  of  the  bonds  referred  to  appear  to  have 
been  the  specialty  of  Mr.  Stanton,  deputy  collector,  and  his  son,  a  clerk  in  his 
division.  The  following  power  of  attorney  to  sign  as  surety,  and  note  from  Mr. 
Stanton,  on  the  back  of  which  it  is  written,  clearly  show  the  estimation  in  which 
these  bonds  were  held  in  the  division  receiving  them,  and  it  could  not  be  ex- 
pected that  they  would  be  regarded  of  more  importance  by  the  community  : 


48 


NEW   YORK  CUSTOM  HOUSE. 


"Custom-House,  New  York, 

"  Collector's  Office,  Nor  ember  29,  1862. 
"Dear  Sib  :  "Will  you  give  your  clerk  power  to  sign  these  bonds  in  your 
name?    It  will  save  trouble  and  avoid  delay.     It  is  a  mere  formality. 
"  Yours,  truly, 

«H.  B.  STANTON. 

"Mr.  Van  Brunt." 

The  above  note  was  indorsed  as  follows  : 

"We  hereby  authorize  Chas.  F.  Dodge  to  sign  the  name  of  the  firm  to  bonds 
of  vessels  clearing  for  the  ports  in  the  Chesapeake  bay. 

"  VAN  BRUNT  &  SLEIGHT." 

On  the  31st  October  I  ascertained  that  the  collector's  fee  of  forty  cents  on 
each  bond  had  not  been  collected,  of  which  written  notice  was  given  you.  On 
the  same  day  you  directed  that  fee  to  be  exacted,  and  your  order  has  been  com- 
plied with.  Soon  afterwards,  with  your  sanction,  I  caused  the  formalities  which 
Mr.  Stanton  had  required  on  execution  of  the  bonds,  and  for  which  he  charged 
notarial  fees,  to  be  dispensed  with. 

The  practice  of  permitting  the  clerks  to  furnish  copies  of  bonds  for  which  un- 
doubtedly they  were  paid,  and  upon  which  provost  marshals  and  other  officers 
posted  certificates  that  the  goods  referred  to  "in  this  bond"  have  been  delivered 
at  their  proper  destination,  was  prohibited,  it  being  deemed  preferable  that  these 
certifying  parties  should  furnish  a  description  or  account  of  the  goods  of  the 
landing  and  destination  of  which  they  certified.  With  respect  to  the  examina- 
tion of  the  bonds,  it  was  confined  to  those  recorded  ;  but  it  was  ascertained  that 
other  bonds  were  taken  of  which  no  record  was  made,  and,  so  far  as  known, 
those  bonds  are  missing.  The  number  can  only  be  ascertained  by  an  examina- 
tion of  all  the  shipper's  manifests  on  which  bonds  wrere  received,  and  that 
involves  much  labor,  which,  up  to  the  present  time,  it  has  been  utterly  impos- 
sible to  attempt,  owing  to  the  unusual  press  of  business  on  my  division,  arising 
in  a  great  measure  from  the  peculiar  circumstances  attending  commerce  since 
the  rebellion.  The  examination  of  the  bonds  themselves  did  not  reveal  the 
connexion  which  it  has  since  been  discovered  that  Mr.  Palmer  and  other  offi- 
cers had  with  their  procurement.  The  facts  connected  therewith  were;  obtained 
through  investigations  with  a  view  to  put  a  stop  to  the  blockade-running  business 
so  far  as  this  port  is  concerned,  involving  great  labor,  the  particulars  of  which 
it  is  not  necessary  to  enumerate.  The  seizure  branch  of  the  business,  and  the 
defence  of  suits  against  the  collector,  appear  to  have  been  committed  to  the 
hands  of  the  chief  clerk,  W.  H.  0.  Waddell.  The  records  of  seizures  are  not 
complete,  the  reports  to  the  clisirict  attorney  are  meagre,  and  the  papers  con- 
nected therewith  have  not  been  arranged  and  preserved  with  proper  care.  In  a 
recent  prosecution  of  the  schooner  George  Darby,  it  cost  me  two  days'  search  to 
find  the  license  and  manifest  actually  requisite  to  commence  the  trial ;  and  after 
seeking  it  in  all  the  departments  of  the  custom-house,  it  was  found  in  the  desk 
of  a  clerk  in  the  district  attorney's  office,  where  it  Avas  left  by  one  of  the  attor- 
neys of  the  claimants  of  the  cargo,  who  had  borrowed  it  at  the  custom-house  to 
be  used  in  bonding  the  goods,  and  h ft  where  it  was  found  by  accident.  ( Ither 
papers  in  the  same  case  were  missing,  and  the  claimants  charged  that  they  were 
withheld  by  officers  of  tie-  government  because  unfavorable  to  the  prosecution. 
Of  suits  against  collectors  no  record  whatever  has  been  kept  in  the  division 
having  charge  thereof,  and  they  appear  to  have  received  no  further  attention 
from  the  custom-house  than  the  transmission  of  a  summons  when  received  to  the 


NEW  YORK  CUSTOM  HOUSE. 


49 


district  attorney,  and  replies  to  inquiries  which  that  official  regarded  it  proper 
to  make. 

The  substance  of  this  report  has  been  from  time  to  time  communicated  to  you 
verbally,  and  suggestions  respecting  charges  which  were  regarded  expedient 
have  been  made.  Pursuant  thereto,  and  in  accordance  with  your  directions,  all 
the  seizures  and  business  connected  with  prosecutions  of  any  kind,  and  also  the 
custody  and  cancellation  of  bonds  heretofore  committed  to  the  ninth,  have  been 
transferred  to  the  tenth  division.  The  receipt  of  bonds  is  still  confided  to  the 
ninth  division,  and  each  day  they  are  delivered  to  the  tenth,  where  they  are 
examined,  filed,  and  certified  to  the  collector.  A  register  has  been  opened  in 
the  ninth  division  in  which  all  suits  against  the  collector  arc  entered,  and  in 
which  will  be  kept  recorded  the  proceedings  thereon,  with  the  preparation  made 
to  assist  the  district  attorney  in  the  defence,  so  that  at  anytime  the  condition  of 
any  case  may  be  readily  ascertained  ;  and  it  is  proposed  that  this  branch  of  the 
customs,  heretofore  neglected  at  this  office,  may  receive  such  attention  as  its 
importance  to  the  government  demands. 

I  have  the  honor  to  be,  sir,  most  respectfully,  your  obedient  servant, 

ALBERT  HANSCOM, 

Deputy  Collector. 

Hon.  Hiram  Barney, 

Collector  of  Customs,  fyc. 

Question.  I  notice  you  speak  in  that  report  of  bonds  being  cancelled,  "  a 
verbal  declaration  having  been  made  sufficient  for  that  purpose."  "What  was 
that  process  of  cancellation  ? 

Answer.  When  a  vessel  returns  from  Norfolk,  or  any  other  place  to  which  it 
had  cleared,  and  in  reference  to  which  a  bond  had  been  given  for  the  proper 
delivery  of  the  cargo,  and  that  his  officers  and  crew  were  loyal,  &c,  it  seems 
that  the  captain  would  come  before  Mr.  Stanton  and  state  that  he  had  complied 
with  the  terms  of  the  bond,  and  Mr.  Stanton  would  cancel  the  bond  upon  that 
statement  of  the  captain. 

Question.  What  is  the  regulation  of  either  the  bureau  or  of  the  department 
with  reference  to  the  cancellation  of  bonds  ? 

Answer.  There  have  never  been  any  specific  regulations.  That  has  been 
left  almost  wholly  to  the  discretion  of  the  collector ;  whatever  was  satisfactory 
to  him  was  sufficient.  There  has  been  correspondence  by  the  collector  with  the 
Secretary  of  the  Treasury,  and  by  the  Secretary  of  the  Treasury  with  the  Sec- 
retary of  State,  and  by  the  Secretary  of  State  with  the  British  minister  upon 
this  subject,  but  there  has  been  no  further  rule  laid  down  than  that,  in  reference 
to  bonds  given  for  the  port  of  Nassau  and  other  British  ports,  the  collector  was 
directed  to  write  "  cancelled"  on  a  bond  when  the  certificate  of  the  consul  was 
satisfactory  to  him  in  reference  to  what  had  become  of  the  goods. 

Question.  There  was  no  prescribed  form  1 

Answer.  None.  The  certificates  which  have  come  from  Nassau,  and  such 
places,  have  been  referred  to  the  Secretary  of  the  Treasury,  and  his  directions 
have  been  taken  in  reference  to  them,  and  that  has  formed  a  precedent.  While 
I  had  charge  of  that  bureau  I  was  very  strict  with  reference  to  cancelling  bonds, 
and  refused  to  cancel  unless  the  evidence  was  very  satisfactory.  I  was  so 
strict  that  complaint  was  made  to  the  department. 

Question.  Upon  taking  possession  of  that  bureau,  after  the  suspension  of 
Stanton,  you  had  possession  at  once  of  the  books  and  papers? 

Answer.  Yes,  sir. 

Question.  And  you  made  an  examination  of  all  the  papers  ? 
Answer.  An  examination  was  made  under  my  supervision  ;  the  clerk-  wore 
in  the  room  and  sat  at  a  desk  adjoining  mine,  while  I  directed  the  examination. 

H.  Rep.  Com.  Ill  4 


50 


NEW  YORK  CUSTOM  HOUSE. 


As  anything  attracted  their  attention  they  showed  me  the  bonds  from  time  to 
time. 

Question.  What  was  Mr.  Barney's  order  in  reference  to  that  1 
Answer.  I  have  his  order  here,  and  I  will  read  it. 

(  i  stom-Housb,  New  York, 
Collector's  Office,  October  28,  1863. 
Sir  :  You  are  hereby  requested  to  assume  and  discharge  for  the  present,  and 
until  further  notice,  the  duties  of  deputy  collector  of  the  ninth  division.  You 
will  take  charge  of  the  rooms  assigned  to  that  division,  ascertain  what  books 
and  papers  are  there  belonging  to  it  and  put  them  in  proper  order  if  they  should 
be  found  to  be  out  of  order,  and  you  will  report  upon  the  condition  of  that 
division  as  soon  as  possible  to  your  obedient  servant, 

HIRAM  BARNEY,  Collector. 

A.  Hanscom,  Esq., 

Deputy  Collector,  $fc. 

Question.  Did  Mr.  Stanton,  after  that,  have  access  to  the  papers  in  that  room? 
Answer.  No,  sir. 

Question.  Were  any  papers  taken  out  of  that  room  by  Mr.  Stanton,  or  on 
his  order  ? 

Answer.  It  was  about  three  o'clock  in  the  afternoon  that  I  was  sent  for  by 
Mr.  Barney,  and  was  requested  to  assume  the  duties  of  that  division.  Mr. 
Jordan,  Solicitor  of  the  Treasury,  was  present.  It  was  so  sudden  I  hardly 
knew  what  was  expected  of  me.  Mr.  Stanton  wanted  to  stay  there  a  few  days 
longer,  but  the  collector  did  not  think  it  proper  that  he  should  do  so.  Mr. 
Stanton  went  into  the  bond-room,  and  I  went  with  him.  Like  every  officer, 
he  kept  more  or  less  private  papers  in  his  desk.  I  did  not  know  exactly  how 
for  I  should  go,  and  I  did  not  like  to  be  too  particular,  especially  as  he  was 
an  older  person  than  I,  and  held  an  equal  official  position.  He  took  out  of  his 
desk  some  papers,  eight  or  ten  in  all  I  should  think,  and  as  he  took  them  up 
he  said  they  were  private,  and  put  them  into  his  pocket,  and  carried  them  away. 
I  got  him,  however,  to  leave  most  of  the  other  papers,  which  he  said  were 
private.  I  told  him  he  had  better  put  them  into  a  drawer,  lock  them  up,  and 
come  after  them  at  some  future  time.  He  did  so  ;  but  he  did  put  some  papers 
which  he  said  were  private  into  his  pocket,  as  I  stated  before.  A  day  or  two 
afterwards  he  sent  his  son  down  to  Mr.  Waddell  to  get  those  papers  which  he 
had  put  into  the  drawer,  and  Mr.  Waddell  told  him  he  might  go  to  that  drawer 
and  take  the  papers.  The  son  went  to  the  drawer  and  undertook  to  put  the 
papers  into  a  large  carpet-bag.  I  forbade  it,  and  went  to  Mr.  Barney  and  told 
him  what  was  being  done.  He  requested  me  to  examine  the  papers.  I  told  him  it 
was  a  very  delicate  matter,  and,  as  I  was  situated,  I  preferred  that  he  should 
attend  to  it.  After  a  little  while  Barney  came  into  the  room  and  stood  there 
while  this  young  man  was  picking  out  the  papers  ;  but  what  examination  Mr. 
Barney  made  1  do  not  know.  I  was  there  in  the  room,  but  did  not  pay  par- 
ticular attention  to  what  transpired.  I  do  not  think  Mr.  Barney  examined  the 
papers  particularly.  I  know  Mr.  Stanton  carried  away  a  number  of  letters 
addressed  to  him  by  consuls  at  Bermuda,  &c,  addressed  to  him  as  deputy  col- 
lector, and  which  I  thought  were  official.  Some  letters  came  addressed  to  him 
a  day  or  two  after  he  left  the'  office,  but  as  I  did  not  feel  at  liberty  to  open  ttoem, 
I  gave  them  to  Mr.  Barney,  and  advised  him  to  keep  them. 

Question.  Do  you  know  what  became  of  those  letters  1 

Answer.  I  do  not. 

Question.  So  that  if  there  was  anything  in  those  letters  which  would  have 
shown  a  collusion  between  Stanton  and  any  consuls,  he  had  an  opportunity  to 
take  those  papers  away. 


NEW  YORK  CUSTOM  HOUSE. 


51 


Answer.  I  know  he  took  some  papers  away.  I  Lad  no  special  directions  in 
reference  to  the  matter,  and  had  no  notice  of  this  thing.  I  was  called  upon  to 
act  upon  the  spur  of  the  moment. 

Question.  You  say  you  know  Stanton  carried  away  letters  addressed  to  him, 
as  deputy  collector,  by  consuls  1 

Answer.  I  have  here  a  summary  of  some  letters  which  he  subsequently  gave 
to  Mr.  Palmer,  and  which  Mr.  Palmer  afterwards  gave  to  me.  The  summary  I 
understood  was  made  by  Mr.  Palmer  from  the  letters. 

Question.  Are  they  copies  ? 

Answer.  No,  sir;  but  an  abstract.  The  letters  which  came  to  the  office, 
after  I  assumed  charge  of  that  room,  addressed  to  Mr.  Stanton  as  deputy  col- 
lector, I  handed  to  the  collector  without  opening  them,  and  advised  him  to  open 
them.    The  collector  put  them  into  his  drawer  unopened. 

Question.  Do  you  know  what  became  of  them  afterwards'? 

Answer.  I  do  not. 

Question.  Have  you  ever  seen  them  since  % 
Answer.  No,  sir. 

Question.  Did  the  collector  ever  tell  you  what  was  in  them  1 
Answer.  No  sir;  I  will  read  you  the  abstract  which  Palmer  gave  me. 
The  abstract  was  as  follows  : 

Abstract  of  letters  to  H.  B.  Stanton,  deputy  collector. 

Letter  from  0.  M.  Allen,  dated  at  Bermuda,  October  30,  18G3,  states  that  Mr. 
Hnghings  has  offered  money  to  "fix  the  matter"  in  regard  to  certain  whiskey 
shipped  in  the  Georgiana ;  that  fraud  is  admitted  in  the  transaction,  and  that 
the  taking  of  a  false  oath  is  not  denied.  Others  are  implicated  in  shipments  by 
this  vessel.  The  writer  offers  to  afford  any  assistance  in  his  power  to  the 
authorities  at  New  York  for  the  purpose  of  detecting  fraudulent  shipments,  of 
which  he  thinks  there  are  many. 

From  the  same,  dated  Bermuda,  October  8,  1863,  states  the  complaints  which 
Bermuda  merchants  make  of  the  restrictions  put  upon  trade,  jtud  the  difficulty 
attending  the  obtaining  certificates.  The  heavy  shipments  for  the  rebels  are 
now  mostly  made  from  Halifax.  A  Mr.  George  M.  Sherman,  a  liquor  dealer  in 
Front  street,  New  York,  came  to  Bermuda  last  spring,  and  made  arrangements 
to  supply  liquors  in  packages  via  Halifax.  This  Mr.  Sherman  has  made  several 
trips  to  B.  via  Halifax,  and  carries  on  quite  a  flourishing  business  with  rebel- 
dom. 

From  same,  dated  Bermuda,  November  5,  1863.  Thinks  the  bond  for  the 
merchandise  consigned  to  F.  Smith  by  the  brig  Harvest  Queen  should  not  be 
cancelled.  Smith  called  on  writer  and  was  willing  to  take  required  oath,  and 
explained  his  shipping  gunny  bags  and  rope  to  Bermudas  by  saying  that  he 
intended  to  set  up  a  cotton  press  in  Bermuda  and  buy  the  loose  cotton  here, 
using  the  bagging  for  the  purpose  of  baling  it,  &c,  &c.  Writer  does  not  think 
there  are  ten  bales  of  loose  cotton  in  the  islands,  and  regards  the  whole  thing 
as  pretence. 

As  to  merchandise  by  the  A.  N.  Goodhue,  consigned  to  A.  Wolf,  there  is  no 
doubt  it  went  to  the  rebels. 

From  same,  dated  Bermuda,  October  26,  1863.  A  shipment  of  gunny  bags, 
rope,  and  furniture  by  Messrs.  Jones  &  Lough,  of  New  York,  per  brig  Hen- 
rietta, on  or  about  the  1st  of  October,  and  consigned  to  W.  Tudor  Tucker,  was 
imported  to  aid  the  rebels.  Tucker  is  "a  handy  man"  for  the  rebels,  appearing 
in  their  behalf  on  all  trying  occasions. 

Hughings  &  Rahming,  recently  here  from  New  York  with  a  cargo  in  the 
schooner  Georgiana,  (referred  to  above,)  discharged  cargo  and  made  oath  before 
consular  agent  at  Hamilton,  in  this  island,  and  obtained  consular  certificate  can- 


52 


NEW  YORK  CUSTOM  HOUSE. 


celling  their  bond  and  covering  all  their  shipment.  Afterwards  the  vessel  came 
lu  re  and  landed  twenty  casks  and  twenty-three  cases  of  whiskey.  This  whis- 
key was  not  in  the  schedule  made  use  of  by  them  before  the  consular  agent. 

Letter  from  James  Haggert,  (assumed  name.)  dated  Victoria  Hotel,  Nassau, 
N.  P.,  October  25,  1S63.  Makes  fearful  revelations;  gives  advice  and  offers  to 
give  positive  information  on  payment  to  him  of  818,000  in  hand,  and  a  promise 
of  |  of  all  proceeds  of  captures.    Humbug  ! 

This  memorandum  did  not  come  to  me  until  four  or  six  weeks  after  Stanton 
went  away. 

Question.  Have  you  any  knowledge  yourself  of  the  requirements  on  which 
these  bonds  were  cancelled  by  Mr.  Stanton  ? 

Answer.  No,  sir;  no  further  than  what  appears  upon  the  bonds  themselves. 

Question.  Do  you  know  anything  of  the  abstraction  of  any  of  these  bonds  ? 

Answer.  Nothing  more  than  was  told  me  by  Mr.  Hussey. 

Question.  Do  you  know  whether  Mr.  Stanton  kept  the  bond  business  under 
his  own  Immediate  control? 

Answer.  All  I  know  is  from  my  observation.  Mr.  Stanton  had  two  rooms. 
There  was  a  door  from  the  hall  into  either  room,  but  he  did  not  allow  any  per- 
son to  come  into  the  hall  door  which  opened  into  his  room.  Persons  came  from 
the  hall  into  the  other  room,  and  there  was  a  door  opening  from  that  room  into 
his.  He  kept  himself  secluded  from  his  clerks  in  that  room.  His  son  did  not 
have  a  desk  there,  but  he  was  in  there  more  or  less.  No  clerk  had  a  desk  in 
the  room  where  Stanton  did  his  work. 

Question.  Was  not  Palmer  an  occupant  of  that  room  ? 

Answer.  Not  after  I  became  an  officer  in  the  New  York  custom •  house ;  but 
he  was  previous  to  that.  After  I  took  possession  of  this  room  of  Stanton's,  Mr. 
C.  Dingley,  who  was  put  in  as  storekeeper  of  the  seizure-room,  brought  to  me 
this  report  which  I  hold  in  my  hand. 

Question.  Who  is  Dingley1? 

Answer.  He  was  appointed  storekeeper  of  the  seizure-room  in  June  last  : 
but  before  that  he  had  been  employed  on  temporary  work,  and  it  seems  that  he 
had  made  an  examination  of  these  bonds.  I  asked  him  at  the  time  he  gave  me 
the  report  when  he  made  the  examination.  He  said  he  made  it  in  January, 
February,  March,  and  April,  1863  ;  and  that  immediately  after  his  suspension 
Mr.  Stanton  came  to  him  and  wanted  to  get  this  report.  Dingley  made  the 
report  in  April  or  May  last.  I  asked  him  if  he  made  the  report  to  Stanton.  He 
said  he  did. 

The  report  is  as  follows  : 

"Bonds  defective  or  ambiguous  in  cancelling. 
"Nos.  104,  16S,  180,  278,  32S,  349,  383,  431,  448." 

"  Bonds  missing. 
"Nos.  30,  189a,  281,  30G,  395,  521,  951,  1419,  1514,  1622." 

"  Conveyance  not  stated. 
"Nos.  455,  825,  947,  1189,  1190,  1337,  1349,  1470,  1477c,  149S,  1557,  1647." 

"  Karnes  not  signed  to  bond. 

"Nos.  614,  973." 

"Omission  of  name  of  one  of  the  parties. 

"No.  964,  (Matamoras  bond,  815,000,)  Thomas  J.  Hand's  name  is  omitted. 
Bond  at  the  head  bears  the  name  of  'Oliver  R.  King'  and  'Thomas  J.  Hand,' 
signed  'O.  R.  King'  only." 


NEW  YORK  CUSTOM  HOUSE. 


53 


"Residence  of  parties  not  stated. 

"No?.  802,  805,  807,  808,  809,  812,  S13,  819,  824,  844,  S4G,  847,  850,  851' 
852,  854,  859,  8G8,  872.  874,  881,  884,  SS7a,  890,  895,  896,  899,  921,  926. 
927,  941,  948,  956,  959,  977,  978,  1481." 

"Name  of  notary  public  omitted. 

1,  1371,  1372,  1408,  1502,  1506,  1530a,  1557,  1569,  1570, 
1574,  1575,  1576,  1577,  1578,  1579,  1584,  1588,  1591,  1592, 
1597,  1599,  1604,  1605.  1606,  1607,  1608,  1609,  1610,  1617, 
1629,  1630,  1631,  1633,  1634,  1642,  1643,  1644,  1645,  1646, 
1651,  1652,  1654,  1655,  1656,  1657,  1658,  1660,  1661,  1662, 
1667,  1669,  1671,  1672,  1679,  1680,  1682,  1683,  16S4,  1685, 
1701,  1702,  1704,  1705,  1706,  1707,  1708,  1710,  1711,  1712, 
1720,  1722,  1725,  1726,  1727,  1730,  1731,  1732,  1733,  1737, 
1741,  1742,  1743,  1744,  1745,  1746,  1747,  174S,  1749,  1750, 
1754,  1756,  1757,  1758,  1759,  1760,  1761,  1763,  1764,  1765, 
1770,  1771,  1773,  1776,  1777,  1778,  1791,  1799,  1800,  1801, 
1811,  1814,  1818,  1825,  1826." 


"Nos.  845,  134 
1571,  1572,  1573, 
1593,  1594,  1595, 
1624,  1625,  1627, 
1647,  164S,  1650, 
1663,  1664,  1666, 
1686,  1601,  1692, 
.713,  171S,  1719, 
1738,  1739,  1740, 
1751,  1752,  1753, 
1767,  1768,  1769, 
1S02,  1804,  1810, 


"  Variation  of  names  on  same  bond. 


Nos.  806. 

807. 
815. 

864. 

96S. 
1414. 
1417. 
1422. 
1447. 
1450. 
1465. 
1472. 
1477a. 
1479. 
1501. 
1524. 
1528. 
1530a. 


Hiram  Bermet. 
Hiram  Benner. 
Hiram  Benner. 
T.  C.  Rahming. 
M.  C.  Rahming. 
Geo.  H.  Leavitt. 
Geo.  W.  Leavitt. 
R.  P.  Ring. 
R.  P.  Wing. 
James  Holscomb. 
James  Holdskom. 
John  S.  Howell. 
Alex.  J.  Howell. 
George  E.  Wylie. 
George  W.  Wylie. 
Reuben  Ryder. 
Reuben  Ryder,  jr. 
Geo.  Ruhland. 
Geo.  Reeveland. 
J.  M'Intire. 
Jere.  M'Intire,  jr. 
John  Matthews. 
John  Mathis. 
A.  R.  Conklin. 

A.  R.  Clinton. 
Theodore  Ralli. 
Theo.  A.  Ralli. 

B.  Nichols. 

J.  B.  Nichols. 
B.  1\  Small. 
B.  A.  Small. 
J.  S.  Davis. 
Jael  II.  Davis. 
Peter  Lieose. 
P.  Laltost. 


"Nos.  1531a. 
1533a. 
1536. 
1540. 
1557. 
1571. 
15S0. 
1593. 
1609. 
1606. 
1616. 
1630. 
1630. 
1637. 
1681. 
16S4. 
16S9. 


Theo.  A.  Miers. 
Theo.  M.  Myers. 
John  A.  Furman. 
Salem  A.  Furman. 
C.  F.  Schrammer. 
C.  F.  Schramm. 
Samuel  S.  Black. 
James  S.  Black. 
M.  S.  Gottberg. 
H.  S.  Gottberg. 
Theo.  Gardner. 
Thos.  Gardner. 
A.  J.  A.  Poole. 
E.  V.  G.  Poole. 
John  Bodine. 
James  Bodine. 
John  Cox. 
John  H.  Cox. 
Willard  Evans. 
W billet  Aleramus. 
John  S.  Cornell. 
John  S.  Bennett. 
Wm.  Ward. 
Wm.  E.  Ward. 
James  Black. 
James  S.  Black. 
J.  Edwards. 
J.  E  wart  Is. 
A.  H.  Jacobs. 
August  Jacobs. 
A.  T.  Fisher. 
A.  G.  Fisher. 
H.  0.  H.  Bartlett. 
C.  H.  Bartlett 


54 


NEW  YORK  CUSTOM  HOUSE. 


By  Mr.  Le  Blond  : 

Question.  Was  Mr.  Harney  cognizant  of  that  statement  of  Dingley  at  that 
time  ? 

Answer.  I  do  not  know,  of  my  own  knowledge.  There  is  a  memorandum,  in 
pencil,  on  Dingley's  report,  made  at  the  time  of  the  examination.  The  memo- 
randum is  in  these  words  :  "  Mr.  Palmer  took  three  different  bonds  to  the  col- 
lector, not  yet  returned." 

Question.  Do  you  know  how  many  of  the  bonds  included  in  Dingley's  report 
are  included  in  the  statement  you  made  to  the  collector  ?• 

Answer.  I  do  not  ;  I  have  not  had  time  to  make  that  examination. 

Question.  Do  you  know  at  whose  instigation  this  Dingley's  report  was  made  ? 

Answer.  I  think  Dingley  told  me  that  1 'aimer  put  him  to  work  there. 

Question.  Do  you  know  by  whose  direction  that  report  of  Dingley  was  made  ? 

Answer.  I  do  not  know  that  I  ever  asked  the  question,  and  1  cannot  say  by 
whose  order  it  was  made.  The  examination  of  these  bonds  is  at  present  incom- 
plete, and  I  Lave  so  informed  Mr.  Barney,  because  we  have  only  examined  the 
bonds  which  were  recorded,  while  we  knew  that  there  were  bonds  taken  of 
which  no  record  was  ever  made.  I  found  five  of  one  party,  I  think,  of  which 
no  record  was  ever  made.  I  found  one  of  Eneas  ;  and  some  time  since,  having 
received  information  in  reference  to  a  shipment  made  by  a  man  of  the  name  of 
Smith,  I  went  to  search  for  the  bond,  but  I  could  find  no  such  bond,  and  no 
entry  of  it  on  the  record  of  bonds.  I  found  on  the  shipper's  manifest  a  certifi- 
cate by  Stanton  that  a  bond  had  been  taken.  It  requires  a  good  deal  of  labor 
to  make  these  examinations,  as  we  have  to  get  at  all  the  shippers'  manifests. 
The  law  requires  the  master  to  make  a  manifest  of  his  whole  cargo,  and  it  also 
requires  each  shipper  to  bring  in  a  manifest  of  the  portion  he  shipped,  and  it 
was  upon  the  shipper's  manifest  that  these  bonds  were  taken.  As  soon  as  I 
found  out  that  a  bond  had  been  taken  and  not  recorded,  I  wrote  a  note  to 
Embree  desiring  that  he  should  not  regard  a  bond  as  executed  without  the  cer- 
tificate on  the  manifest  of  Waddell  that  it  had  been  taken,  and  also  another 
certificate  of  Ward,  the  recording  clerk,  that  it  was  on  record. 

Question.  What  is  the  practice  in  taking  bonds  ? 

Answer.  The  practice  was  to  bring  the  shipper's  manifest  to  the  ninth  division, 
and  a  bond  was  then  taken,  according  to  the  form  approved  by  the  Treasury 
Department,  referring  to  the  goods  as  described  in  the  shipper's  manifest,  which 
was  not  attached  to  the  bond.  After  I  took  possession  of  that  room,  I  directed 
that  a  duplicate  manifest  be  made  out  and  signed  by  the  shipper  and  attached 
to  every  bond.  And  that  is  the  practice  now,  unless  the  goods  themselves  can 
be  fully  described  in  the  bond.  In  reference  to  these  manifests,  I  will  say  I 
was  informed  by  a  broker  that  when  parties  would  come  in  to  cancel  these 
bonds,  it  was  not  always  convenient  to  find  the  manifests  to  see  if  the  goods 
described  in  the  certificate  and  the  manifests  were  the  same.  Stanton  would 
say  that  he  could  not  get  the  manifests,  but  that  if  they  would  swear  that  the 
certificate  contained  all  the  goods  described  in  the  manifests  he  would  take  their 
statement ;  that  they  would  do  so,  and  Stanton  would  take  a  notary's  fee  for  it. 

Question.  Do  you  know  anything  of  the  circumstances  attending  the  seizure 
of  the  steamer  Jose  ? 

Answer.  That  vessel  was  seized  on  the  7th  of  October  last,  I  think.  The 
seizure  of  this  class  of  vessels,  under  the  confiscation  act  for  blockade  running, 
properly  belonged  in  Stanton's  division,  but  Mr.  Denison,  naval  officer,  and 
myself  obtained  evidence  about  this  steamer  Jose,  and  finally  she  was  seized  by 
our  direction.  We  were  at  work  on  the  matter,  I  think,  ten  or  twelve  days 
before  the  seizure  was  made.  After  she  was  seized  Stanton  appeared  very 
anxious  to  have  her  released,  and  the  collector  wras  troubled  about  it  a  good 
deal.  She  had  letters  from  the  British  consul,  and  the  British  minister,  I  think, 
made  inquiries  of  our  government  about  the  seizure.    The  owner  was  threaten- 


NEW  YORK  CUSTOM  HOUSE. 


55 


ing  to  sue  the  collector  for  damages,  &c,  according  to  reports.  Denison  and  I 
were  at  work  obtaining  evidence  to  make  out  a  case,  because  we  were  e<  rtain 
it  was  a  guilty  vessel.  The  difficulty  was  to  obtain  legal  evidence.  While  we 
were  consulting  about  that  matter  we  discovered,  through  a  person  not  connected 
with  the  custom-house,  that  a  letter  had  been  written  to  the  collector  by  the 
United  States  marshal,  which  we  regarded  as  containing  sufficient  evidence  to 
justify  the  seizure,  and  we  were  sure,  if  we  got  the  case  into  court,  we  had  suf- 
ficient proof  to  justify  us,  if  not  to  condemn  the  vessel.  Our  difficulty  was  in 
reference  to  satisfying  the  collector.  We  could  not  show  him  what  we  thought 
would  be  probable  cause,  and  we  wanted  a  little  time  to  do  it  in.  Mr.  Barney 
was  not  aware  of  this  letter  having  been  received  by  him.  It  was  sent  to  his 
office,  opened  by  the  assistant  collector,  and  immediately  referred  by  him,  as 
all  letters  are,  to  the  proper  bureau.  This  was  referred  to  Mr.  Stanton.  This 
letter  was  dated  the  5th  of  October,  and  upon  the  back  of  it,  where  the  seal 
was,  was  written  "  immediate."  The  letter  was  immediately  handed  over  to 
Stanton,  in  whose  bureau  I  subsequently  found  it.  Stanton  did  not  let  the 
collector  or  Denison  or  me  know  that  he  had  such  a  letter  during  the  whole 
time  we  were  in  this  trouble  and  doubt  as  to  whether  we  should  give  up  the 
vessel,  or  proceed  to  prosecute.  I  discussed  the  matter  with  Stanton,  and  was 
present  with  Mr.  Denison  when  he  discussed  it  with  him,  and  it  was  his  anxiety 
to  release  this  vessel  that  satisfied  me  that  the  statements  I  had  heard  about 
the  bonds  were  correct,  and  Denison  and  I  then  determined  to  see  those  bonds  if  they 
could  be  seen.  Before  that  time  we  doubted  the  reports  which  had  been  made. 
We  made  arrangements  and  proceeded  to  a  store,  where  the  parties  showed  us 
those  bonds.  Had  we  known  the  contents  of  that  letter  during  those  troubles, 
we  should  not  have  hesitated  to  proceed  against  the  vessel.  When  we  found 
that  letter,  and  understood  all  the  circumstances,  we  believed  that  the  story 
about  the  bonds  were  correct. 

Question.  You  say  you  afterwards  found  this  letter  of  the  United  States 
marshal  in  Stanton's  office  ? 

Answer.  Yes,  sir ;  and  it  is  now  in  court  among  the  papers  on  the  trial  of  the 
Jose. 

Question.  What  were  the  contents  of  the  letter  ? 

Answer.  The  marshal  notified  the  collector  that  this  Jose1,  which  had  been 
running  the  blockade  and  had  been  taken  as  a  prize  and  sold  at  auction,  was 
going  to  clear  for  Havana  or  Nassau,  and  that  he  was  well  informed  that  her 
real  destination  was  to  run  the  blockade.  When  Mr.  Barney  reported  this 
vessel  to  the  district  attorney,  in  order  to  commence  proceedings  against  her, 
he  would  not  report  her  without  stating  that  the  naval  officer  had  information 
sufficient  to  justify  the  prosecution.  Mr.  Stanton  was  averse  to  proceeding 
against  the  vessel.  We  should  not  have  hesitated  a  moment  to  proceed  against 
her  if  we  had  had  that  letter  in  our  possession.  At  the  same  time  there  was 
cotton  under  seizure — cotton  from  Matamoras,  which  was  charged  with  being 
brought  from  Texas,  and  Stanton  was  anxious  ,o  have  that  cotton  surrendered 
up  at  the  same  time.  He  persisted  in  it,  and  left  Denison's  room  offended  be- 
cause he  would  not  consent  to  it.  Stanton  said  he  would  go  and  give  the  col- 
lector his  opinion  in  regard  to  it,  and  do  his  duty  toAvards  having  it  delivered 
up.  He  left  the  naval  officer's  room  offended  because  the  naval  officer  would  not 
consent  to  give  it  up.  This  matter  is  now  in  court;  the  question  of  confiscation 
has  not  yet  been  determined. 

Question.  You  state  that  you  were  informed  by  a  party  outside  of  the  con- 
tents of  that  letter  1 

Answer.  Yes,  sir  ;  a  gentleman  informed  Denison  and  myself  that  there  was 
a  letter  in  the  office  from  the  United  States  marshal  which  would  justify  us  in 
proceeding  against  the  vessel.  There  were  parties  outside  stating  that  the 
owners  of  the  Jose  felt  very  well  about  it,  that  they  were  certain  we  would  have 


5G 


NEW  YORK  CUSTOM  HOUSE. 


to  give  her  up,  and  that  they  had  parties  inside  of  the  custom-house  who  would 
help  them.  A  person  said  to  me,  "  If  you  are  going  to  give  up  that  cotton,  aud 
will  let  me  know,  I  can  make  $3,000  out  of  the  information,  because  they  are 
willing  to  pay  something  handsome."  I  told  him  the  cotton  was  not  going  to 
be  given  up. 

New  York,  March  21,  1S64. 

Albert  Hanscom  recalled. 
By  Mr.  Le  Blond : 

Question.  Have  you  made  any  further  examination  in  reference  to  the  bond 
matters  in  what  was  formerly  Mr.  Stanton's  bureau  since  you  gave  your  former 
testimony  ? 

Answer.  I  have  not  made  any  specific  examination  of  the  bonds  for  that  pur- 
pose, but  some  things  have  transpired  in  the  course  of  business  in  reference  to 
that  bureau  since  my  former  examination. 

Question.  1  Mease  give  us  a  statement  of  what  you  have  discovered  since  that 
time,  if  anything. 

Answer.  Since  that  time  the  collector  has  received  a  letter  from  the  Secretary 
of  the  Treasury,  enclosing  a  letter  from  a  person  in  Colorado  Territory,  in  which 
he  informed  the  Secretary  that  a  Mr.  Lyon  out  there  had  read  him  a  letter  from 
his  brother,  in  which  he  stated  that  he  was,  and  had  been,  engaged  for  some 
time  in  shipping  goods  from  New  York  to  Matamoras.  The  letter  reads  as  fol- 
lows, (dated  Central  City,  Colorado  Territory,  February  8,  1864:) 

"Sir  :  James  E.  Lyon,  of  this  place,  read  a  letter  in  my  presence  from  a 
brother,  also  named  Lyon,  residing  in  New  York  city,  on  the  eve  of  his  depar- 
ture with  his  family  for  Matamoras,  in  which  he  states  that  be  was  engaged, 
and  had  been  for  some  time,  in  shipping  goods  from  New  York  to  Matamoras, 
and  thence  into  the  rebel  State ;  that  it  was  a  risky  business,  but  that  he  had 
made  large  suras  of  money  by  it.  He  gave  the  names  of  his  confederates  in 
New  York  and  firm  name,  but  1  do  not  now  recollect  them.  Perhaps  Collector 
Barney  can  ascertain  them.  Lyon  formerly  resided  at  San  Antonio,  but  on  the 
breaking  out  of  the  rebellion  came  north,  matured  his  plans,  and  went  to  Mata- 
moras. His  recent  visit  was  made  for  the  purpose  of  taking  his  family  with  him 
to  Mexico.  I  have  frequently  heard  James  E.  Lyon  say  that  his  brother  was 
in  the  business  of  smuggling  goods  to  the  rebels." 

Upon  the  receipt  of  that  letter,  which  was  sent  for  our  information,  I  made 
an  examination  to  see  if  I  could  find  any  of  Mr.  Lyon's  bonds,  and  I  found  he 
gave  a  bond  (No.  "432")  the  7th  of  November,  1862,  Alexander  M.  White  as 
surety,  for  $858  50,  and  which  was  cancelled  by  affidavit  made  by  Lyon  him- 
self, at  Monterey,  April  27,  1863.  I  sent  for  this  party,  who  I  suppose  was 
connected  with  it,  as  surety  upon  this  bond,  and  he  said  that  this  shipment 
(cutler's  material)  was  a  bona  fide  shipment,  to  go  to  Monterey.  I  also  found 
that  Lyon  gave  a  bond  ("461")  for  810,000,  and  that  no  surety  was  taken  upon 
that  bond,  and  that  bond  has  not  been  cancelled.  I  was  informed  by  this  party 
that  this  second  shipment  was  Mr.  Lyon's  own  personal  business,  and  that  he 
did  not  know  anything  about  it.  There  is  no  surety  upon  it,  and  Mr.  Lyon  is 
now  in  Mexico. 

Question.  Have  you  examined  the  manifest  of  that  shipment? 

Answer.  Finding  that  some  difficulty  was  likely  to  arise  from  the  manner  of 
taking  these  bonds,  by  referring  therein  to  the  manifest  disconnected  with  the 
bond  itself,  soon  after  taking  charge  of  the  bureau  1  directed  that  a  duplicate  of 
the  manifest  be  furnished  by  the  party  giving  bonds  in  all  cases,  to  be  annexed 
permanently  to  the  bonds,  describing  the  goods  as  they  were  described  in  the 
shipper's  manifest.    That  has  been  the  practice  since,  where  the  goods  are  not 


NEW  YORK  CUSTOM  HOUSE. 


57 


specifically  described  in  the  bonds  themselves.  In  tliis  case  the  manifest  could 
not  be  found.  I  found  four  bonds  of  0.  K.  King  without  any  surety  on  either: 
No.  782,  for  $110,000;  No.  964,  for  $15,000;  No.  1137,  for  $20,000;  No. 
1220,  for  *20,000.  1  was  informed  that  he  paid  $5  for  executing  each  one  of 
them. 

Question.  To  whom  1 

Answer.  To  Stanton.  I  also  examined  three  bonds  given  by  Darrell  &  Co., 
Nos.  734,  735,  and  736,  for  $24,600  for  the  three.  They  had  no  seals,  and 
they  Mere  cancelled  by  the  affidavit  of  J.  H.  Gambier,  at  Nassau,  the  consul 
merely  certifying  as  to  what  appeared  by  the  affidavit,  without  expressing  any 
opinion  of  his  own.  To  present  the  point  more  fnlly,  1  herewith  submit  a  cop}" 
of  the  affidavit  of  the  consignee,  and  a  copy  of  the  certificate  of  the  consul 
himself. 

Exhibit  O. 

Copy  of  affidavit. 

United  States  Consulate, 

Nassau,  N.  P.,  Bahamas. 
J.  II.  Gamblin,  being  duly  sworn,  doth  depose  and  say :  that  he  is  agent  of 
the  importer  hereinafter  named ;  that  the  annexed  schedule  signed  by  him  con- 
tains a  true  statement  of  the  whole  of  the  goods  and  property  shipped  from 
New  York,  by  Darrell  &  Co.,  to  W.  H.  Weech,  at  Nassau,  New  Providence,  and 
in  the  brig  L.  Berry,  on  or  about  the  26th  day  of  February,  1863;  that  said 
goods  and  property  have  all  been  landed,  entered  at  the  custom-house  at  Nassau, 
New  Providence,  and  the  duties  paid  thereon;  that  said  goods  and  property  were 
imported  solely  for  sale  and  consumption  in  the  Bahamas,  and  have  not  been, 
nor  are  they  intended  to  be,  directly  or  indirectly,  sold,  exported,  or  carried  to, 
or  used  to  aid  or  comfort,  any  person,  place,  port,  State,  or  country  in  rebellion 
against,  at  war  with,  or  which  is  blockaded  by,  the  government  of  the  United 
States  of  America,  to  the  knowledge,  information,  or  belief  of  this  deponent. 

J.  H.  GAMBLIN. 

Sworn  to  before  me  this  24tli  day  of  Julv,  1863. 

W.  C.  THOMPSON, 

United  States  Vice- Consul. 

Bond  No.  1734,  $10,000;  bond  No.  1735,  $10,000;  bond  No.  1736,  $4,600, 
cancelled  by  these  certificates. 

Copy  of  consular  certificate,  Nassau,  New  Providence,  July,  1863,  upon  which 

bonds  were  cancelled. 

United  States  Consulate, 

Nassau,  N.  P.,  July  24,  1863. 

I,  W.  C.  Thompson,  vice-consul  of  the  United  States  of  America  at  Nassau, 
New  Providence,  do  hereby  certify  that  the  goods  and  property  mentioned  and 
described  in  the  affidavit  and  schedule  hereto  annexed  have  been  landed  at  the 
port  of  Nassau,  New  Providence,  and  entered  at  the  custom-house  here,  and  the 
duties  thereon,  ,  paid  at  the  said  custom-house,  as  appears  by  the  certifi- 
cate of  the  custom  house  officers,  and  the  affidavit  hereto  annexed. 

I  do  further  certify  that  the  said  goods  and  property  were  imported  solely  for 
sale  and  consumption  in  the  Bahamas,  and  have  not  been,  nor  are  they  intended 
to  be,  sold,  exported  to,  or  used  to,  aid  or  comfort  any  person,  place,  port.  State, 
or  country  in  rebellion  against  the  government  of  the  United  States  of  America, 
as  appears  by  the  affidavit  hereto  annexed. 


58 


NEW  YORK  CUSTOM  HOUSE. 


In  witness  whereof,  I,  the  said  consul,  have  hereunto  set  my  hand  and  seal 

r         1    of  this  consulate,  this  day,  &c. 

LSEAL-I  W.  C.  THOMPSON, 

United  States  Vice-Consul. 

By  the  chairman  : 

Question.  Complaints  have  been  made  before  the  committee  that  there  is  great 
difficulty  in  getting  their  bonds  cancelled,  or  given  up,  after  the  goods  have  been 
delivered  and  certificates  produced  to  that  effect. 

Answer.  My  objection  to  cancellation  in  many  cases  has  been  thai  there  was 
furnished  no  proof,  other  than  an  affidavit  made  by  a  person  entirely  unknown 
to  the  office,  appearing  to  be  consignee  of  the  goods.  The  Solicitor  of  the  Trea- 
sury was  informed  of  the  nature  of  these  certificates,  and  of  the  consideration 
given  to  them  at  this  office,  and  did  not  object  to  our  proceedings. 

Question.  You  had  better  state  in  this  connexion  why  the  consular  certificate 
is  not  good. 

Answer.  The  certificate  of  the  consul  annexed  to  the  affidavit  of  the  person 
or  consignee  merely  certifies  as  to  what  appears  upon  the  affidavit,  without  ex- 
pressing any  opinion  of  his  own  respecting  the  ultimate  destination  of  the  goods. 

A  bond  was  given  on  a  shipment  of  goods  to  Matamoras  by  Adolph  Bern- 
heimer  on  the  14th  of  February,  1863,  for  $180,000  on  5,081  packages  of  goods 
such  as  were  necessary  to  supply  the  wants  of  the  insurgents,  comprising  such 
goods  as  are  known  to  be  shipped  south.  That  bond  was  cancelled  by  Mr. 
Stanton,  deputy  collector,  on  the  production  of  the  certificate  of  the  consul  that 
the  goods  were  bonded,  and  "to  the  best  of  my  knowledge  have  not  been  used 
to  give  aid  to  the  enemies  of  the  United  States  government." 

I  herewith  submit  the  certificate  of  the  consul  and  a  copy  of  the  invoice  at- 
tached to  the  bond  in  this  case : 

Exhibit  D. 

Bond  for  $1  SO, 000 — cancelled  by  this  certificate. 

United  States  Consulate, 

Matamoras,  July  21,  1S63. 

I,  the  undersigned,  consul  of  the  United  States  of  America  for  Matamoras 
and  the  dependencies  thereof,  do  hereby  certify  that  the  five  thousand  and  eighty- 
one  packages  of  merchandise  before  mentioned  have  been  landed  and  sold  in  this 
port,  and  to  the  best  of  my  knowledge  have  not  been  used  to  give  aid  to  the 
enemies  of  the  United  States  government. 

In  testimony  whereof,  &c. 

r        -  L.  PEIRCE,  Jr., 

[seal. J  Um  St  0msul 


State  of  New  York, 

City  of  Neiv  York,  ss  : 
Adolph  Bernheimer,  being  sworn,  says  that  the  merchandise  enumerated  in 
the  within  manifest  or  invoice  covers  and  includes  all  the  merchandise  for  which 
bond  No.  1559  was  given  at  the  New  York  custom-house,  February  14,  1863. 

ADOLPH  BERNHEIMEK. 
Sworn  to  before  me  this  18th  September,  1863. 

H.  B.  STANTON, 

Notary  Public. 


NEW  YORK  CUSTOM  HOUSE. 


59 


New  York,  February  — ,  18G3. 
Copy  of  invoice  attached  to  bond  1559,  AdolpJi  Bernheimer.    Manifest  of  cargo 
per  bark  Wild  Horse,  G.  Davison,  master ,  from  New  York  for  Matamoras. 
Skipped  by  Adolph  Bernheimer,  New  York,  and  consigned  to  A.  Uhde  Sf  Co., 
Matamoras. 
E  V       75  boxes  tin  plate. 

750  boards. 
E  P  3  cases  handkerchiefs. 

W  B  &  Co.     1  case  bandanas. 
K         244  coils  rope. 
[A]  B      215  kegs  nails. 

200  barrels  flour. 
24  cases  nails. 
R  A  B      450  coils  of  rope.  t 
2,000  bags  corn. 

2  iron  safes, 

W  [S]      151  bales  gunny  cloth. 
A  C  Co.       5  bales  domestic. 

5    do  blankets. 
F  2    do  rugs. 

B         125  boxes  cotton  cards. 
[A]  B        19  cases  clothing. 
L  M  S         7  bales  cotton  goods. 

J  R  1  case  do. 

C  [A]  B      16  do    iron  shoe  nails. 

IB  6  do    shoe  pegs. 

D  P  C       10  bales  gray  cloth,  plain. 
W  B         15  cases  satinets. 
K  E         20   do  calico. 
[A]  B        14  do  hats. 
T  [A]  B      72  cases  spool  cotton. 

5  cases  thread. 

1  do    sewing  silk. 

3  do  pins. 

10  do  buttons. 

3   do  suspenders. 
3  do  combs. 

2  do    hooks  and  eyes. 

3  do  stationery. 

11  bales  shoe  thread. 
2  cases  hoop  skirts. 
2  do  envelopes. 

S  [A]  B     110  do    boots  and  shoes. 

1   do  shirts. 
W  [A]  B       5   do  satinets. 
T  B  A         3  do    bleached  sheeting. 
A  B  1  bale  cotton  goods. 

8  cases  shirts  and  drawers. 
56  bags  sumac. 
[A]  B       20  barrels  potash. 

50     do  copperas. 

1  case  hardware 
52  cases  hats. 
[A]  B       12  bales  do. 

5  bundles  wire. 
1  box  rivets. 


60 


NEW  YORK  CUSTOM  HOUSE. 


2  cases  shirts. 
15]  boards. 

50  wall  strips. 

3  c^ses  daguerreotype  materials. 
20    do  matches. 
36    do  snuff. 

1  bale  haling  thread. 

2  trunks  socks. 

4  do  samples. 
1    do  do. 
9  cases  bleached  sheeting. 

Matamoras,  June,  1863. 
We,  A.  IJhde  &  Co.,  merchants  of  Matamoras,  hereby  certify  that  the  above 
specified  goods,  consisting  of  five  thousand  and  eighty-one  packages,  have  been 
landed  in  this  port  from  the  bark  Wild  Horse,  Davison  master,  from  New  York, 
and  have  been  received  by  us  in  consignment  for  sale  in  this  city. 

Signed  for  A.  UHDE  &  CO., 
PAUL  ZURN. 

I  also  found  bond  No.  973,  dated  December  29,  1862,  the  obligors  recited  in 
the  bond  being  Stephen  D.  Inman  and  John  R.  Inman,  the  execution  being 
witnessed  by  the  signature  of  D.  Cady  Stanton,  and  also  a  notarial  certificate 
of  H.  B.  Stanton  that  the  obligors  appeared  before  him  and  executed  the  instru- 
ment ;  but  neither  of  the  obligors  signed  the  bond. 

By  Mr.  Rollins : 

Question.  What  information,  if  any,  have  you  had  from  the  consuls  at  Nassau, 
Matamoras,  and  other  ports  suspected  of  being  engaged  in  blockade  running, 
respecting  goods  shipped  from  New  York  for  the  purpose  of  being  transhipped 
into  the  Confederate  States? 

Answer.  I  do  not  remember  anything  except  from  Bermuda,  and  I  think  an 
abstract  of  the  letters  from  the  consul  there  has  already  been  furnished  the 
committee. 

Question.  What  facilities  has  our  consul  at  Nassau  for  obtaining  information 
in  reference  to  the  shipment  of  goods  for  the  purpose  of  running  the  blockade? 

Answer.  I  have  been  informed  by  parties  from  Nassau,  that  from  the  prox- 
imity of  the  consul's  office  to  the  place  where  this  business  is  carried  on,  it  was 
impossible  for  him  not  to  have  knowledge  of  the  fact  that  the  goods  from  New 
York  are  transhipped  immediately  aboard  blockade  runners. 

By  the  chairman  : 

Question.  Who  cleared  the  "Jose"  at  the  custom-house? 

Answer.  She  was  cleared  in  the  regular  course  of  business  ;  could  not  tell 
what  individual  ;  I  presume  Mr.  Embree,  if  he  was  there. 

Question.  Where  was  the  negligence,  and  who  was  the  culprit,  that  her 
cargo,  portions  of  which  were  so  manifestly  contraband,  should  have  escaped 
observation,  or  by  what  inducement  were  the  custom-house  officers  inclined  to 
turn  their  backs  upon  it? 

Answer.  Her  cargo  of  itself  was  not  contraband ;  she  was  cleared  directly 
for  Havana,  and  it  was  pretended  that  her  cargo  was  to  be  landed  at  Havana ; 
Jbut  we  had  evidence  that  it  was  not  to  be  landed  there,  which  was  gathered 
from  informed  parties  by  our  special  aids.  If  this  same  cargo  had  been  in  an 
ordinary  vessel,  I  suppose  no  suspicion  would  have  attached  to  it. 

Question.  Did  you  ever  arrive  at  a  knowledge  of  the  positive  ownership  of 
that  vessel  ? 


[A]  B 
A  B 


T  A  B 


NEW  YORK  CUSTOM  HOUSE. 


til 


Answer.  No,  sir,  unless  it  was  made  clear  by  circumstantial  evidence  in  con- 
nexion with  the  trial  in  the  United  States  district  court.  We  alleged  thai  she  was 
owned  by  this  man  (J.  II.  Wagnon)  from  Alalabama,  and  from  what  we  learned 
from  our  agents  who  were  investigating  the  matter,  we  were  satisfied  that  she 
was  not  owned  by  Eneas,  though  he  claimed  the  ownership  of  her  after  she  was 
seized,  and  threatened  he. would  make  the  custom-house  officials  sweat  for  it,  as 
I  was  informed  and  believe. 

Question.  Do  you  recollect  who  paid  for  her  and  her  cargo  ? 

Answer.  Eneas  swore  on  the  trial  that  he  owned  the  vessel  and  the  whole 
cargo,  (this  was  before  Judge  Betts,  in  the  United  States  district  court,  Decem- 
ber, 1863,)  and  that  he  had  paid  for  her  and  her  cargo.  He  swore  thai  all  the 
money  he  paid  out  in  the  course  of  his  business  was  entered  upon  his  books. 
His  books  being  unexpectedly  brought  into  court,  he  was  requested  to  find 
where  this  payment  of  liquors  and  a  wagon  were  entered  upon  the  books,  being 
a  part  of  the  cargo  of  the  "Jose."  He  insisted  that  they  were  upon  his 
books,  and  began  to  examine  them,  and  after  examining  them  for  a  long  while 
he  could  not  hud  an  entry  of  any  such  payments. 

By  Mr.  Rollins: 

Question.  Did  he  undertake  to  say  that  the  payment  for  the  vessel  was  also 
entered  in  his  books  ? 

Answer.  He  showed  from  his  books  that  it  was  all  entered,  and  some  por- 
tions of  the  cargo.  The  vessel  was  seized  on  the  7th  day  of  October ;  she  was 
not  reported  to  the  district  attorney  for  proceedings  until  the  19th  of  October, 
on  account  of  the  difficulties  of  the  case  in  the  office. 

By  the  chairman: 

Question.  Do  you  knoAv  whether  a  clearance  bond  was  given  in  that  case  ? 

Answer.  I  doubt  whether  an)  bond  was  given,  because  the  vessel  cleared 
for  Havana.  Eneas  acknowledged  on  the  stand  that  most  of  the  cargo  was  really 
bound  for  Nassau,  and  one  point  in  the  case  was,  that  the  shipper's  manifest 
which  he  signed  was  not  sworn  to  by  him,  but  by  the  master,  which  was  a 
very  irregular  proceeding. 

Question.  Do  you  know  anything  about  the  private  letters  of  Stanton  in  his 
office  ? 

Answer.  About  3  o'clock  of  the  28th  of  October  I  was  ordered  by  the  col- 
lector to  go  in  there  and  take  possession,  and  I  went  in  with  Mr.  Stanton. 

By  Mr.  Rollins  : 

Question.  Did  you  meet  at  the  store  of  Mr.  Conklin  in  August,  1863,  Hussey 
and  other  parties  1 

Question.  Yes,  sir ;  as  near  as  I  can  remember,  it  was  in  August ;  it  may 
have  been  in  July. 

Question.  What  transpired  at  that  meeting  1 

Answer.  In  July,  I  think,  Mr.  Barney  introduced  Mr.  Hussey  to  me,  and 
said  that  he  (Hussey)  had  information  about  smuggling  and  blockade  running, 
and  he  wished  I  would  attend  to  it.  Consequently  I  had  several  conversations 
with  Mr.  Hussey  at  the  office  about  it.  Some  time  after  he  was  first  introduced 
to  me  he  said  he  had  got  hold  of  an  old  Jew  who  could  give  us  a  greal  deal  .it' 
information  and  assistance.  Our  conversation  originally  was  about  these  block- 
ade runners  and  the  smuggling  of  merinos  from  Canada.  Mr.  Hussey  said  he 
had  information  about  it,  and  he  showed  me  some  letters  from  Montreal  about  it. 
What  made  me  think  there  was  something  in  it,  was  the  fact  that  we  received 
letters  from  some  French  houses  here  in  New  York,  which  1  have  gol  now,  re- 
ferring to  the  same  thing,  and  stating  that  large  quantities  of  merinos  Mere  being 
bought  up  in  France,  and  that  the  whole  market  there  was  being  swept  out  by 


62 


NEW  YORK  CUSTOM  noUSE. 


^Englishmen.  They  suspected  that  they  were  going  to  smuggle  them  into  this 
country  through  Canada,  for  they  could  not  tell  what  they  were  going  to  do  with 
such  quantities  of  merino?  unless  it  was  so.  That,  with  the  information  which 
Mr.  Iiussey  gave  me,  led  me  to  think  that  there  was  something  in  it.  I  spoke 
to  Mr.  Barney  about  it  at  the  time,  and  also  to  Mr.  Harrington,  the  Assistant 
Secretary  of  the  Treasury,  who  was  here  at  the  time,  but  he  was  not  very  well, 
and  said  he  did  not  want  to  be  troubled  about  it.  We  talked  about  sending  up 
Mr.  Hussey  or  somebody  else  to  the  frontier,  and  Mr.  Hussey  brought  in  and 
recommended  a  Captain  Perkins  as  a  man  who  was  acquainted  with  all  the 
merchants  in  Montreal,  and  knew  all  about  this  business.  Mr.  Barney  did  not 
seem  to  be  inclined,  and  I  could  not  get  him  to  say  that  he  would  send  anybody 
up  there.  We  talked  about  it  a  good  while,  but  nobody  was  sent  up.  I  had  no 
mean?  myself  to  send  anybody  up,  and  so  no  one  was  sent.  Mr.  Iiussey  said 
lie  had  got  hold  of  an  old  Jew  and  wanted  to  introduce  him  to  me  ;  that  he  had 
been  in  with  the  blockade  runners,  but  his  partners  had  cheated  him,  and  he 
wanted  to  make  himself  square  by  having  their  goods  seized.  I  went  down  to 
New  street,  to  have  a  conversation  with  Myers,  (the  old  Jew.)  I  think  I  met 
him  three  times.  He  began  by  telling  the  same  story  which  Hussey  had  told; 
that  he  had  been  cheated  out  of  $70,000  by  the  blockade  runners  ;  that  he  had 
acted  as  their  agent  in  bringing  their  orders  and  exchange  to  New  York  and  in 
doing  their  business  ;  that  these  parties  were  still  engaged  in  running  the  block- 
ade to  Wilmington  and  Charleston,  shipping  their  goods  to  Bermuda  and  Nassau, 
and  he  now  wanted  to  consult  with  me  as  to  what  goods  and  other  property  could  be 
forfeited,  and  see  whether  he  could  have  a  share  of  the  forfeiture  if  they  were 
forfeited.  Hussey  was  to  be  the  legal  informer,  and  he  (Myers)  was  to  give  the 
information,  but  did  not  wish  to  be  known,  and  he  and  Hussey  were  to  share  the 
informer's  portion.  I  told  him  I  would  see  about  it,  and  I  consulted  a  lawyer 
at  that  time,  (Mr.  Hussey  went  with  me,)  to  see  whether  we  could  confiscate  ex- 
change. Myers  said  he  would  go  to  Nassau  and  get  these  orders  in  his  hands, 
as  he  had  done  formerly,  and  get  their  exchange,  which  he  said  was  always  in- 
dorsed, and  would  bring  it  here,  and  if  we  could  confiscate  exchange  he  would 
put  it  into  our  hands  ;  and  if  we  could  not  do  it,  he  would  get  such  information 
about  the  orders  for  the  goods  before  they  were  delivered  to  the  ship,  that  when 
the  goods  were  shipped  we  could  have  proof  that  they  were  really  going  south, 
and  we  could  then  confiscate  them.  He  wanted  me  to  give  him  a  letter  to  the 
consul  at  Nassau,  and  Hussey  talked  with  him  about  it  several  times.  I  told 
Hussey  that  I  could  not  do  it ;  that  I  did  not  have  much  confidence  in  a  man 
who  was  ready,  as  it  appeared  by  his  own  statements,  to  take  into  his  hands  the 
property  of  those  men  who  he  pretended  were  his  friends,  and  then  turn  upon 
them,  and  I  did  not  believe  we  could  place  any  reliance  upon  his  statements.  I 
was  unwilling  to  give  him  any  official  letter  which  he  had  asked  for,  and  yet 
I  did  net  want  to  break  off  with  him,  in  hopes  that  something  possibly  might 
come  out  of  his  information.  Myers  said  that  the  American  government  had  a 
great  many  spies  out  at  Nassau,  and  he  was  afraid  that  they  woidd  trouble  him, 
knowing  that  he  was  a  blockade  runner;  that  if  he  got  this  property  into  his 
hands  the  officers  of  the  United  States  army  or  navy  might  seize  it  there,  and 
they  might  also  seize  it  here,  and  therefore  he  wanted  to  carry  out  a  letter  to 
the  consul  with  him.  I  told  him  that  I  did  not  see  why  he  need  be  afraid  of 
the  United  States  spies  interfering  with  him  at  a  port  under  the  English  govern- 
ment, and  when  he  got  here  lie  could  be  protected  by  the  authorities  here.  It 
was  at  the  second  interview-  that  he  advanced  this  idea  about  the  letter.  The 
third  time  I  saw  him  was  just  before  the  "  Corsica"  was  going  to  sail,  in  which 
he  expected  to  go  to  Nassau.  He  wanted  me  to  advance  him  a  thousand  dollars 
in  gold,  and  he  said  he  could  not  go  unless  it  was  done.  I  told  him  I  had  no 
money  to  advance  him,  as  I  had  no  government  money  for  that  purpose,  and  I 
could  not  advance  it  out  of  any  money  of  my  own  ;  that  he  knew  more  about 


NEW  YORK  CUSTOM  HOUSE. 


63 


this  plan  than  any  one  else,  and  as  he  was  going  to  have  the  informer's  share 
and  as  I  had  no  interest  in  it,  he  must  run  the  risk  of  his  expenses  ;  thai  he  must 
pay  his  own  expenses,  or  else  we  should  not  have  much  confidence  in  his  state- 
ments at  all.  He  still  talked  a  good  deal  about  having  confidence  in  him,  and 
insisted  that  he  would  not  carry  out  the  plan  unless  he  had  this  thousand  dol- 
lars in  gold  advauced  to  him,  and  I  finally  told  him  if  thai  w  as  the  case  there 
was  no  use  in  discussing  the  matter  any  further,  and  I  left  him.  Thai  was,  I 
think,  some  time  in  August.  I  did  not  see  him  again  to  speak  to  him  until  after 
the  seizure  was  made  on  board  of  the  "Corsica"  except  once;  I  met  him  ac- 
cidentally in  Mr.  Denison's  office,  about  the  25th  of  October,  he  having  been 
sent  for  to  make  a  statement  to  Mr.  Jordan.  I  then  had  no  conversation  with 
him  about  any  business,  and  never  inquired  what  he  stated  to  Mr.  Jordan,  because 
after  he  endeavored  to  obtain  from  me  the  thousand  dollars  I  regarded  him  as  a 
swindler. 

By  the  chairman  : 

Question.  At  these  interviews  in  August  did  you  make  any  proposition  other 
than  what  you  have  stated  ? 
Answer.  No,  sir. 

Question.  Did  he  propose  that  if  he  would  ship  goods  to  Nassau  and  give 
bonds,  you  should  have  those  bonds  cancelled'? 

Answer.  No,  sir.  Nothing  was  said  about  bonds,  or  about  his  shipping 
any  goods  anywhere. 

Question.  And  did  he  also  suggest  that  a  large  amount  of  money  might  be 
made  by  you  by  getting  parties  to  ship  goods  to  Nassau  ? 

Answer.  No,  sir.  All  the  conversation  was  about  orders  and  the  exchange 
he  proposed  to  put  into  our  hands  ;  and  then  if  those  parties  shipped  to  Nassau 
and  Bermuda,  we  should  have  evidence  that  they  were  going  south.  These 
were  the  only  points  or  propositions  discussed.  Nothing  was  said  about  any 
bonds  whatever  at  that  time  or  any  other  time.  I  did  not  see  Myers  again 
until  after  the  seizure  of  the  Corsica,  except,  as  before  stated,  accidentally, 
which  was  made  under  the  direction  of  Mr.  Denison,  who  had  really  the  con- 
trol of  the  matter.  At  that  time  I  was  very  busy  preparing  for  the  trial  of  the 
Jose',  to  which,  as  far  as  possible,  I  gave  my  exclusive  attention.  After  this 
seizure  Myers  came  in  to  see  me ;  that  is,  the  seizure  of  property  on  board  the 
Corsica.  I  had  not  seen  him  from  August  until  October,  that  I  remember. 
This  seizure  was  the  last  of  November.  He  wanted  me  to  help  him  to  get  the 
property  that  was  taken  away  from  his  son-in-law,  (Israel  E.  Woolff.)  He  said 
that  this  Israel  E.  Woolff  had  never  been  engaged  in  blockade-running,  but  that 
George  Woolff  had;  and  if  I  would  help  him  to  get  the  property  of  Israel  Woolff 
out  of  Mr.  Denison's  hands,  he  (Myers)  would  swear  against  the  property  of 
other  persons  that  Mr.  Denison  had  taken  from  this  same  vessel.  I  paid  no  at- 
tention to  his  offer,  because  I  did  not  give  his  statement  any  credit  whatever. 
1  think  he  came  a  third  time  into  my  room,  wanting  me  to  get  those  papers  . 
and  when  he  found  I  would  not  do  it,  he  went  away  threatening  me.  These 
interviews  were  in  the  presence  of  the  clerks  in  the  room.  I  never  had  an  in- 
terview with  Myers  except  in  the  presence  of  a  third  person.  I  think  that  is 
the  last  time  I  ever  spoke  to  him  until  recently,  when  he  was  in  the  custom- 
house trying  to  ship  goods  to  Nassau. 

Question.  What  did  he  want  to  ship  ? 

Answer.  He  had  an  assorted  shipment  of  about  $4,000. 

Question.  Did  you  have  any  interview  with  Myers,  after  the  seizure  of  the 
Jose,  about  the  Jose  1 

Answer.  I  never  spoke  to  him  after  the  seizure  of  the  Jose,  nor  he  to  me, 
with  reference  to  that  seizure,  or  as  to  the  terms  upon  which  she  could  be  given 
up,  or  anything  of  the  kind.  I  never  spoke  to  him  about  the  dose.  1  would 
like  to  state  what  did  take  place.    In  the  hist  place,  I  would  like  to  state  that 


G4 


NEW  YOKK  CUSTOM  HOUSE. 


my  connexion  with  the  Jose  was  entirely  accidental.  It  happened  in  this  way  : 
Mr.  Franklin,  deputy  naval  officer,  came  to  me  one  day,  (it  must  have  been 
some  time  in  the  latter  part  of  September,)  and  told  me  that  Mr.  Denison  was 
out  of  town,  and  that  there  was  an  inspector,  by  the  name  of  Adam  Roediger, 
to  whom  Mr.  Denison  had  furnished  some  money  to  work  up  a  case,  who  wanted 
some  more  money,  and  Mr.  Franklin  wanted  to  know  if  I  could  get  him  some 
in  anyway.  As  I  do  not  believe  these  statements  generally  when  a  man  wants 
money,  and  as  this  was  not  a  matter  coming  within  my  division,  and  it  was  not, 
incumbent  upon  me  to  go  out  of  my  way,  especially  to  pay  out  money,  I  did 
not  think  it  best  to  do  anything  about  it.  The  next  day  Mr.  Franklin  came 
again,  (Mr.  Denison  having  not  yet  returned,)  and  said  :  "  This  fellow  says  un- 
less lie  has  more  money,  the  money  he  had  already  spent  would  be  lost.  Can't 
you  help  this  man  to  get  his  month's  pay  advanced  to  him,  because  he  is  willing 
to  spend  bis  own  money  ?"  I  went  down  with  him  to  the  surveyor's  room  and 
got  his  bill  for  the  month  approved  by  the  surveyor,  and  went  up  to  the  au- 
ditor's room  to  get  his  pay  for  him,  having  to  state  the  reasons  why  1  w  anted  it. 
I  got  his  month's  pay  advanced  to  him,  having  some  confidence  that  there  was 
something  in  it  because  lie  was  willing  to  spend  his  own  money,  and  he  went 
away  to  work  up  the  case  ;  and  on  account  of  my  getting  him  this  money,  he 
began  to  make  reports  of  his  proceedings  to  me  and  take  my  advice.  That 
was  the  w  ay  I  happened  to  have  anything  to  do  with  the  Jose.  Afterwards  I 
loaned  him  some  money  out  of  my  own  pocket,  which  I  have  never  got  back. 
He  went  on  obtaining  evidence,  and  it  resulted  in  Mr.  Denison  ordering  the 
vessel  seized.  From  that  time  my  connexion  with  the  seizure  of  the  Jose 
ceased,  until  I  took  charge  of  the  ninth  division,  October  28,  excepting  my  ad- 
vising with  Mr.  Denison  as  to  the  proper  course  to  be  pursued  to  hold  the  ves- 
sel for  trial.  I  had  no  legal  connexion  with  the  seizure,  because  that  matter 
belonged  to  Mr.  Stanton's  bureau,  and  I  had  no  power  or  management  over  it 
in  any  way.  After  she  was  reported  to  the  United  States  district  attorney,  of 
course  no  arrangement  could  be  made  by  us  about  giving  up  the  vessel  From 
the  time  of  the  seizure  until  reported  to  the  district  attorney  she  was  in  the 
hands  of  Mr.  Stanton,  and  he  reported  her  to  the  district  attorney,  when  it  was 
found  the  naval  officer  was  determined  she  should  be  prosecuted  for  forfeiture. 

The  only  negotiation  I  ever  heard  of  about  giving  her  up  was  four  or  five 
days  after  the  seizure,  when  I  was  very  anxious  about  it,  and  afraid  that  the 
vessel  would  be  given  up  on  account  of  the  threats  that  were  being  made  against 
Mr.  Barney.  I  saw  that  Mr.  Stanton  was  in  favor  of  giving  her  up,  and  1  sent 
for  Hussey  and  asked  him  if  he  could  not  go  around  and  get  some  additional 
information,  because  some  of  the  information  we  had  seemed  to  be  too  weak  in 
this  respect — that  we  could  not  use  it  legally,  and  it  was  second-hand,  and  I 
wanted  to  get  hold  of  something  which  would  induce  Mr.  Barney  to  feel  that 
he  was  right  in  the  seizure.  Mr.  Hussey  came  in,  and  I  asked  him  if  he  could 
get  me  some  information  about  her.  He  said,  "  I  think  I  have  done  enough  for 
the  government  for  nothing."  I  said,  "  I  have  no  means  of  paying  you,  but  if 
you  could  give  me  any  information  I  should  like  it."  He  went  aw  ay,  and  upon 
that  day  or  the  next,  I  think  the  same  day,  he  came  back  and  said,  "  These 
Jose  fellows  are  seared,  and  I  think  they  will  pay  the  appraised  value  of  the 
vessel  if  it  is  not  over  $20,000."  I  replied,  "  If  they  have  a  mind  to  make  the 
offer  1  should  have  no  objection,  to  satisfy  the  collector  that  the  vessel  was 
guilty  ;  but  the  vessel  could  not  be  given  up  under  any  circumstances  upon  any 
payment,  because  it  would  not  be  right  for  us  to  take  the  money  and  afterwards 
refuse  to  let  her  go  to  sea,  and  she  could  not  be  allowred  to  proceed  to  sea." 
That  conversation  w  ith  Hussey  was  the  only  conversation  in  which  I  heard 
anything  of  this  kind.  The  only  sum  mentioned  there  was  $20,000.  When- 
ever the  appraised  value  is  paid,  it  is  into  court,  if  the  amount  exceeds  $1,000. 
I  had  nothing  to  do  with  the  Jose  legally  until  after  Mr.  Stanton  left  the  cus- 


NEW  YORK  CUSTOM  HOUSE. 


G5 


tom-house,  when  his  bureau  devolved  upon  me.  Whatever  I  did  previously 
was  assisting  Mr.  Denison,  he  complaining  that  he  could  get  no  aid  from  the 
collector's  department.  I  prepared  for  the  trial,  got  a  lawyer  myself  to  manage 
the  case  without  cost  to  the  government,  and  used  my  best  endeavors  to  con- 
demn her. 

Question.  Has  Mr.  Myers  attempted  to  ship  goods  recently  ;  and  if  so,  with 
what  results,  and  under  what  circumstances? 

Answer.  About  the  2d  of  this  month  he  brought  in  a  manifest,  of  the  value 
of  about  $4,000,  of  articles  the  largest  portion  of  which  are  such  as  are  found 
on  board  of  vessels  captured  running  the  blockade.  He  executed  his  bonds  so 
far  as  this  :  The  captain  had  signed  it,  and  he  himself  had  signed  it  as  one  <>t 
the  sureties,  but  it  required  another  surety  to  make  it  satisfactory.  The  col- 
lector sent  for  Mr.  Runkle,  who  now  has  this  matter  of  bonds  in  charge,  and  he 
was  not  in  the  room.  The  messenger  said  Mr.  Runkle  was  not  in;  went  back 
and  asked  Mr.  Harney  if  I  would  do;  came  again  and  asked  me  to  come  into 
Mr.  Barney's  room.  I  went  to  the  collector's  room  and  found  Myers  there. 
Mr.  Barney  referred  Myers  to  me.  I  inquired  what  business  he  had  with  the 
office.  He  commenced  to  make  a  statement,  and  I  then  informed  him  that  any 
statement  he  had  to  make  must  be  made  in  writing,  as  I  would  not  receive  it 
unless  in  writing.  He  then  said  his  business  had  reference  to  a  shipment,  and 
the  manifest  was  in  writing,  consisting  of  an  account  of  goods  intended  to  be 
exported  to  Nassau.  I  then  informed  the  collector  that  Myers  was  a  blockade- 
runner  ;  that  he  had  acknowledged  to  me  and  to  others  that  he  had  been  en- 
gaged in  that  business  ;  that  his  character  in  other  respects  was  bad,  and  that 
he  couldn't  ship  goods  to  Nassau  with  my  consent.  I  also  informed  the  collector, 
in  Myers's  presence,  in  what  respects  1  knew  his  character  to  be  bad,  and  that 
he  was  guilty  of  perjury.  The  collector  said  he  was  ignorant  about  the  matter, 
and  he  must  see  Mr.  Embree  respecting  the  proposed  shipment.  Myers  imme- 
diately left  the  custom-house.  1  was  then  certain  that  he  had  sworn  falsely  in 
an  affidavit;  and  I  soon  afterwards  obtained  proof  of  his  false  swearing,  which 
made  it  appear  certain  to  others.  I  examined  the  bond  received  on  Myers's 
proposed  shipment  to  Nassau,  which  he  had  signed  as  surety,  and  found  that  he 
had  made  an  affidavit,  in  order  to  render  himself  acceptable,  that  he  was  owner 
of  a  house  in  New  York  which  was  therein  particularly  described.  From  my 
knowledge  of  his  character  I  was  satisfied  this  affidavit  was  false,  and  I  caused 
an  examination  to  be  made  running  back  twenty  years,  and  found  no  real  estate 
had  during  that  time  been  recorded  in  his  name.  It  was  also  ascertained  that  a 
Mrs.  Davison  was  owner  of  the  house  referred  to  in  Myers's  affidavit,  at  the 
time  it  was  made,  and  that  she  had  been  the  owner  of  it  for  ten  years.  I  have 
an  affidavit  of  these  facts  made  by  the  searcher. 

Question.  How  did  the  matter  finally  terminate? 

Answer.  I  sent  some  officers  to  the  vessel  in  which  Myers  had  laden  his 
goods,  for  the  purpose  of  an  examination.  The  shipment  consisted  of  hay 
and  other  articles.  Information  had  been  received  from  Nassau  that  telegraph 
wire  was  shipped  there  from  this  port,  concealed  in  hay.  The  hay  and  some  of 
the  other  goods  were  examined,  but,  according  to  the  report  made  to  me, 
nothing  was  concealed  therein. 

Mr.  Church,  assistant  collector,  informed  Myers  that  he  would  not  be  per- 
mitted to  ship  the  goods.  Soon  after  a  person  inquired  of  me,  if  he  should  pur- 
chase the  merchandise  of  Myers,  it  would  be  allowed  to  proceed.  Regarding  such 
a  proceeding  as  a  collusion  with  and  mere  cover  for  Myers,  I  informed  him  that 
we  could  not  stand  such  humbug  ;  that  the  goods  should  not  go;  and  they  did 
not  go,  with  the  exception  of  a  small  portion  which  could  not  be  discharged 
without  landing  the  whole  cargo  and  entailing  expense  upon  other  parties  re- 
garded as  innocent.  * 

1  never  gave  my  consent  to  the  shipment  of  any  portion.  After  Myers  ascer- 
U.  Rep.  Com.  Ill  5 


GG 


N E W  yORK  CUSTOM  HOUSE. 


tained  the  shipment  could  not  be  made,  he  came  to  the  office  and  endeavored  to 
get  possession  of  the  Loud  before  referred  to.  I  had,  however,  taken  good  care 
of  that  document,  putting  it  in  my  pocket  as  soon  as  I  discovered  it,  being 
satisfied  his  affidavit  was  false,  and  fearing  to  leave  it  in  the  office,  lest  some  one 
should  break  open  my  premises  and  steal  it.  I  was  told  by  the  clerks  that  he 
had  been  there  several  times  to  get  it,  and  another  person  inquired  after  it,  and 
subsequently  for  his  residence,  with  a  view,  as  I  believe,  to  cause  the  bond  to  be 
referred  to  in  which  his  residence  was  stated,  (though,  as  afterwards  appeared, 
falsely, )  either  for  the  purpose  of  grabbing  it  or  of  ascertaining  where  it  was  kept, 
Myers  claiming  he  was  entitled  to  it. 

This  bond  suddenly  became  important,  because  it  proved  Myers  a  perjurer. 

Mr.  Runkle  came  to  me  and  said  Myers  wanted  his  bond,  and  I  told  him  that 
no  man  in  the  United  States  could  have  it. 

I  herewith  submit  a  copy  of  a  letter  referred  to  in  my  former  testimony,  written 
by  me  with  a  view  to  securing  the  recording  of  every  bond  taken. 

Custom-House,  New  York, 
Collector's  Office,  November  13,  1863. 
Sir:  In  order  to  be  sure  that  bonds  required  by  you  on  shipments  of  mer- 
chandise to  certain  foreign  and  domestic  ports  are  really  taken  by  this  division, 
I  have  directed  the  chief  clerk,  Mr.  Waddell,  to  certify  on  the  manifest  or  request 
to  ship,  "bond  taken,"  and  also  that  the  recording  clerk,  Mr.  James  W.  Ward, 
add  his  check,  "bond  recorded." 

Please  regard  your  request  to  take  bond  as  not  complied  with,  without  both 
of  these  checks. 

Very  respectfully,  &c., 

A.  HANSCOM, 
Deputy  Collector,  temporarily  in  charge  9th  division. 

Mr.  Embree, 

Deputy  Collector. 

Evidence  of  George  Denison. 

Washington,  January  27,  1864. 
George  Denison,  a  witness,  was  sworn  and  examined  as  follows : 

Questions  by  the  chairman: 
Question.  Are  you  connected  with  the  custom-house  at  New  York  ? 
Answer.  I  am  naval  officer  of  the  port  of  New  York. 

Question.  I  will  read  to  you  the  resolution  by  which  the  matters  connected 
with  the  New  York  custom-house  were  referred  to  this  committee  : 

"Resolved,  That  the  charges  recently  made  of  official  misconduct  in  the  New 
York  custom-house  in  regard  to  alleged  shipments  of  contraband  goods  and 
supplies,  and  all  matters  of  alleged  misconduct  in  the  management  of  the  affairs 
of  the  custom-house  at  New  York,  be  referred  to  the  Committee  on  Public  Ex- 
penditures." 

I  would  inquire  how  long  you  have  been  connected  with  the  custom-house 
as  naval  officer  or  otherwise'? 

Answer.  Since  the  first  of  June,  1861. 

Question.  There  are  two  principal  points  to  which  the  committee  desire  to 
direct  your  attention  at  present :  the  blockade-running  business  from  New 
York  and  the  parties  connected  therewith,  and  then  the  matters  known  as  Mr. 
Palmer's  transactions.  Your  name  was  given  to  the  committee  as  one  who 
could  explain  the  routine  which  parties  must  pass  their  business  through  in 
order  to  effect  their  purposes  of  running  the  blockade.    Please  state  to  the  com- 


NEW  YORK  CUSTOM  HOUSE. 


07 


mittee  what  knowledge  you  have  in  reference  to  those  matters;  how  long  and 
how  they  have  heen  going  on  in  New  York. 

Answer.  The  manifests  of  all  vessels  sailing  from  the  port  of  New  York, 
after  passing  through  the  collector's  office,  go  into  the  naval  office  and  are  there 
checked  by  the  naval  officer.  It  is  his  duty  to  see  that  the  requirements  of  the 
law  are  complied  with  as  to  form. 

The  second  section  of  the  act  of  May  20,  1862,  provides  that  in  the  shipment 
of  goods  to  a  foreign  or  domestic  port  the  owner  of  the  vessel  or  the  captain 
shall  give  a  bond  to  the  collector,  in  the  value  of  the  goods  shipped,  that  the 
goods  shall  not  be  used  in  any  manner  to  aid  the  rebellion.  The  section  of  the 
act  is  as  follows  ■ 

"Sec.  2.  And  be  it  further  enacted,  That  whenever  a  permit  or  clearance  is 
granted,  for  either  a  foreign  or  domestic  port,  it  shall  be  lawful  for  the  collector 
of  the  customs  granting  the  same,  if  he  shall  deem  it  necessary,  under  the 
circumstances  of  the  case,  to  require  a  bond  to  be  executed  by  the  master  or 
the  owner  of  the  vessel,  in  a  penalty  equal  to  the  value  of  the  cargo,  and  with 
sureties  to  the  satisfaction  of  such  collector,  that  the  said  cargo  shall  be  delivered 
at  the  destination  for  which  it  is  cleared  or  permitted,  and  that  no  part  thereof 
shall  be  used  in  affording  aid  or  comfort  to  any  person  or  parties  in  insurrection 
against  the  authority  of  the  United  States." 

By  that  section  the  bonding  is  under  the  direction  of  the  collector,  and  the 
security  is  to  be  satisfactory  to  the  collector.  When  the  manifest  is  presented 
to  the  collector,  if  he  requires  bond,  it  was  transmitted  to  Henry  B.  Stanton, 
deputy  in  charge  of  ninth  division,  who  received  the  bond  and  indorsed  thereon 
"Bond  given. — H.  B.  S."  If  the  manifest  had  that  check  on  it  the  vessel  was 
allowed  to  have  a  clearance. 

By  Mr.  Rollins : 

Question.  The  bond,  then,  did  not  come  under  your  observation  ? 

Answer.  No,  sir ;  my  duty  was  discharged  Avhen  I  saw  the  proper  require- 
ments had  been  complied  with. 

Question.  The  only  evidence  you  required  was  the  memorandum  of  Stanton? 

Answer.  That  was  all  so  far  as  the  bond  was  concerned;  yet  I  frequently  de- 
tained clearances  on  account  of  reports  which  came  to  me  from  various  sources ;  and, 
when  questionable  merchandise  was  being  shipped  and  by  questionable  parties, 
I  would  detain  it  and  make  an  examination,  and  have  an  overhauling  of  matters 
by  the  officers  whose  duty  it  was  to  look  after  those  things ;  and  I  tried  some- 
times, in  connexion  with  Mr.  Stanton,  to  trace  these  goods.  I  became  satisfied, 
from  reports  from  various  sources,  that  these  goods  found  their  way  into  the 
seceded  States,  and  suggested  the  idea  of  sending  parties  down  to  Matamoras 
and  other  places  to  get  information  for  the  guidance  of  officers  in  the  New  l^ork 
custom-house.  Mr.  Stanton  favored  it,  and  there  was  a  correspondence  between 
him,  as  he  stated,  and  the  department;  and  the  reason  he  gave  me  for  not 
pursuing  it  further  was  the  objection  made  by  the  British  legation  that  we  were 
] dacing  such  restriction  upon  foreign  commerce  as  would  get  us  into  difficulty. 
Mr.  Stanton  had  the  sole,  1  may  say  exclusive,  control  of  the  taking  of  the 
bonds,  &c.  He  also  passed  upon  the  sufficiency  of  the  securities.  This  branch 
of  business  he  seemed  to  take  especially  to  himself,  although  not  in  communi- 
cation with  foreign  consuls  at  Bermuda,  or  Nassau,  or  Matamoras;  yet,  from 
parties  returning  from  those  places,  1  became  satisfied  that  there  was  a  targe 
amount  of  goods  going  from  New  York  directly  to  those  ports.  I  had  great 
confidence  in  Mr.  Stanton  from  his  position  in  the  political  party  t.»  which  he 
belonged.  He  had  been  prominent,  and  his  position  was  very  well  defined,  and 
I  thought,  of  course,  there  was  every  assurance  that  he  would  use  his  best 
endeavors  to  throw  about  this  trade  all  the  obstacles  he  could  without  harass- 
ing legitimate  business. 


GS 


NEW  YORK  CUSTOM  HOUSE. 


Some  time  in  August  or  September  last  I  was  called  upon  by  a  person,  who 
gave  me  some  information.  I  will  state  that,  prior  to  this,  I  had  heard  from 
several  sources,  which  I  thought  entitled  to  consideration,  that  the  business  of 
Air.  Stanton's  bureau  Mas  nol  properly  conducted.  This  person  was  J.  B. 
Hussey.  He  called  on  me  and  stated  that  parties  shipping  goods  to  Bermuda, 
Nassau,  and  Matamoras,  were  able  to  buy  up  their  bonds,  as  he  termed  it,  of 
the  bond  bureau.  He  stated  that  in  some  instances  the  parties  would  come  to 
the  custom-house  and  execute  a  bond,  and,  after  the  vessel  was  cjeared  and 
before  she  got  out  of  the  harbor,  the  party  giving  the  bond  would  pay  a  con- 
sideration to  the  party  in  charge  of  that  bureau  and  receive  his  bond.  He 
said  he  had  seen  some  such  bonds,  and  he  could  show  them  to  me.  I  then 
conferred  with  the  collector  on  the  subject.  The  collector  said  he  could  not 
credit  any  such  thing;  that  his  confidence  was  such  that  he  could  hardly 
entertain  any  such  suspicion;  that  he  had  much  confidence  in  Stanton,  and  not 
much  in  the  source  of  information.  Jle  said  that  a  party  had  been  to  him, 
and  that  he" had  referred  him  to  his  deputy,  Hanscom,  and  he  did  not  credit  it. 
I  saw  Hanscom,  and  he  told  me  this  party  had  been  to  him;  that  he  had  spent 
considerable  time  upon  the  matter.  Coupled  with  this  information  was  a  project 
of  sending  a  party  to  Nassau  to  procure  further  information.  This  information 
M  as  to  be  given  upon  the  condition  that  arrangements  could  be  made  to  send  a 
man  to  Nassau  to  get  information.  And  then  there  was  a  certain  amount  of 
money  to  be  advanced  to  pay  expenses.  Hanscom  looked  the  matter  over, 
and  finally  said  he  could  not  get  out  anything  satisfactory  from  the  statements. 
He  told  me  of  these  facts. 

I  had  an  intimation  from  another  source  of  the  same  thing,  and  determined 
to  make  an  investigation.  I  set  about  it  in  connexion  with  this  man  and  Hans- 
com, and  it  was  attended  with  great  difficulty.  Parties  doing  this  sort  of  busi- 
ness have  great  dread  of  an  exposure,  and  they  communicate  all  facts  with  the 
greatest  possible  hesitation,  and  it  was  only  upon  the  most  positive  assurance 
from  me  to  the  party  who  had  transacted  this  business  as  an  agent  of  the  ship- 
pers, that  his  name  should  not  be  used  in  connexion  with  this  matter,  that  he 
should  be  held  harmless  if  he  would  furnish  the  information  by  which  the  gov- 
ernment should  be  enabled  to  ascertain  the  facts  for  its  protection.  He  said 
that  the  parties  in  trade  with  Bermuda  were  an  old  established  house ;  that  they 
were  natives  of  Bermuda  ;  that  they  had  been  doing  business  a  long  time  ;  that 
they  had  no  connexion  with  blockade  running,  and  no  sympathy  with  it,  but 
that  they  did  not  want  to  be  deprived  of  their  legitimate  trade,  and  he  accepted 
things  as  they  were.  He  said  he  felt  badly  about  it,  that  he  had  been  connected 
with  it,  and  that  these  men  did  not  know  what  to  do ;  he  finally  found  that 
these  bonds  could  be  bought,  and  purchased  them. 

After  spending  some  weeks  to  get  at  this  matter,  and  to  get  it  into  shape  so 
that  I  could  have  the  confidence  of  this  man,  he  took  me  to  his  office  and  showed 
me  six  or  seven  bonds  which  he  had  purchased,  and  for  which  he  had  paid 
some  two  thousand  dollars.  He  paid  the  money  to  a  broker.  The  negotiation 
for  the  bonds  was  had  while  this  person  stood  in  the  rotundo  of  the  custom- 
house, and  the  broker  went  from  Mr.  Stanton's  room  back  and  forth  to  him. 
In  one  instance  before  the  vessel  had  gone  out  of  the  harbor,  one  or  two  bonds 
were  brought  to  him,  for  which  he  paid  the  money. 

Question.  What  was  the  broker's  name  % 

Answer.  Henry  Smith.  After  getting  these  facts  I  telegraphed  to  the 
Solicitor  of  the  Treasury,  and  he  came  at  once  to  New  York,  and  we  got  hold 
of  all  of  the  facts  we  could  at  that  time. 

In  the  investigation  of  that  case,  I  came  across  a  party  who  had  been  ship- 
ping goods  to  Nassau ;  who  had  been  there  and  engaged  in  running  the  block- 
ade, and  had  been  in  Wilmington  and  Charleston  several  times.  I  succeeded 
in  getting  this  party  to  make  a  statement  by  giving  him  the  same  assurance  I 


NEW  YORK  CUSTOM  HOUSE. 


69 


had  to  the  other  party,  and  by  presenting  to  him  the  alternative  of  either  giving 
the  information  or  the  consequences  of  his  proceedings.  Rather  than  goon  with 
the  controversy  and  take  the  consequences,  he  consented  to  give  me  a  full  state- 
ment of  all  the  parties  in  Nassau,  Wilmington,  and  in  New  York.  He  put  the 
matter  into  the  form  of  an  affidavit.  His  information  did  nor  cover  all  the  facts, 
but  it  was  some  assistance,  and  gave  me  the  first  tangible  clue  to  the  business 
of  blockade  running  in  connexion  with  New  York. 

Then  there  came  the  seizure  of  the  steamer  .lose,  formerly  the  steamer 
Eagle,  which  was  caught  in  running  the  blockade  in  Florida,  and  brought  into 
New  York  and  sold.  Perhaps  she  was  condemned  in  Florida;  but  al  any  rate 
she  was  brought  to  New  York  and  sold.  She  was  purchased  ostensibly  by 
Joseph  Eneas,  who  has  resided  in  New  York  some  eighteen  years,  and  married 
an  American  wife;  he  claimed  to  be  a  British  subject.  His  wife  owns  his 
American  ships,  and  he  owns  the  English  ships.  He  claimed,  as  an  English 
subject,  that  he  had  a  right  to  purchase  blockade  runners,  and  to  sell  blockade 
runners  to  parties  who  wanted  them,  and  also  to  sell  goods  to  parties  who 
wanted  to  run  the  blockade.  I  got  information  in  reference  to  the  Jose,  and  in 
prosecuting  the  investigation  of  the  surrounding  circumstances,  I  came  across 
this  proof:  That  a  person  came  from  Montgomery,  Alabama,  to  New  York,  with 
letters  of  introduction  to  John  Burhams,  in  New  York,  from  his  son,  residing  in 
Charleston,  South  Carolina.  This  party  ordered  a  buggy  wagon  to  be  made 
in  New  York,  with  his  initials  painted  on  the  panels,  and  also  a  harness  with 
his  initials  on  that.  He  stated  to  the  parties  he  purchased  of,  that  he  wanted 
this  wagon  and  harness  to  use  in  Montgomery  ;  that  he  had  some  valuable 
horses,  and  that  he  had  made  large  sums  of  money  by  running  the  blockade  ; 
that  this  was  his  last  venture ;  and  that  he  had  brought  money  on  to  purchase 
the  Jose.  He  bought  this  wagon  and  harness,  and  also  various  other  things. 
Mr.  Eneas  claimed  to  own  the  Jose  and  her  cargo.  He  swore  that  he  owned 
the  whole;  the  vessel  was  cleared  for  Havana.  When  the  vessel  was  sold  by 
Mr.  Benner,  the  agent  of  Mr.  Clapp,  marshal  of  the  southern  district  of  Florida, 
Benner  made  out  a  bill  of  sale  in  blank.  Eneas  claimed  to  be  a  British  subject; 
and  holding  that  position,  he  claimed  he  could  do  anything  with  the  vessel  he 
chose. 

From  the  information  I  had  obtained,  I  was  satisfied  there  was  a  large  number 
of  people  who  were  going  to  and  from  Nassau  to  New  York  on  board  of  Eng- 
lish steamers — the  Corsica,  the  Governor  Bailey,  &c.  I  was  thoroughly  satis- 
fled  of  that  fact  from  the  information  of  the  parties  I  had  used  in  working  up 
the  testimony  in  relation  to  the  Jose ;  and  I  made  an  arrangement  with  the  col- 
lector and  surveyor  to  detail  an  extra  number  of  men,  on  the  arrival  of  the 
Corsica  in  November  last,  in  order  to  board  her  off  Sandy  Hook.  I  had  learned 
through  these  sources  that  it  was  customary  for  parties  to  come  ashore,  when 
the  health  officers  were  going  on  board  at  Staten  Island,  with  important  de- 
spatches, and  then  to  take  the  ferry-boat  from  Staten  Island  to  New  York.  I 
learned  from  one  person  that  he  had  been  in  the  habit  of  taking  letters  in  that 
way,  and  of  distributing  them  in  New  York  ;  also,  orders  from  Nassau  for  goods, 
and  letters  from  the  southern  States.  In  order  to  get  all  the  information  I 
could,  the  Corsica  was  boarded,  before  reaching  Staten  Island,  for  the  purpose 
of  searching  her  thoroughly,  and  also  every  person  on  board  of  her.  That 
arrangement  was  carried  out.  The  vessel  and  passengers  were  thoroughly 
searched,  and  a  very  large  number  of  letters  direct  from  the  southern  States  found. 
Persons  on  board  had  very  considerable  sums  of  money  in  bills  on  southern 
banks,  in  bonds  of  southern  States,  with  some  sterling  exchange  and  some 
gold. 

Among  the  passengers  was  Mr.  George  G.  Wolf,  of  the  firm  <  f  A.  Wolf  & 
Co.,  of  Nassau.  He  has  partners  in  New  York — A.  Hoffnung  and  Lewis  Ben- 
jamin.   Wolf  had  in  his  carpet-bag  southern  bonds,  sterling  exchange,  and  gold, 


70 


NEW   YORK  CUSTOM  HOUSE. 


the  sum  of  eight  or  ten  thousand  pounds.  I  knew  be -was  engaged  in  blockade 
running.  Indeed,  he  averred  it,  and  stated  in  my  office  he  was  an  English  sub- 
ject, and  would  run  the  blockade  when  he  pleased,  would  do  as  he  pleased,  and 
defied  this  government,  or  any  other,  to  interfere.  The  English  consul  at  once 
communicated  with  the  collector  somewhat  urgently,  and  1  believe  this  party  ap- 
plied to  Lord  Lyons,  who  made  the  subject  a  matter  of  correspondence  with  the 
Secretary  of  State.  Tin-  consul  wrote  several  letters,  and  the  collector  thought, 
as  the  case  stood,  that  Mr.  Wolf's  property  should  be  given  up.  I  was  very 
averse  to  it;  but  my  position  was  such  that  1  deemed  it  more  prudent  to  give  the 
valuables  up  at  that  time  than  to  retain  them.  Had  1  been  in  possession  of  the 
knowledge  I  have  since  obtained,  I  should  not  have  consented  to  give  them  lip. 

At  that  time  this  .Air.  Wolf  gave  the  collector  notice  that  In;  should  load  a 
vessel  for  Nassau  and  clear  her  without  bonding.  There  is  a  letter  from  his 
counsul  on  the  subject.  He  notified  the  collector  that  he  did  not  intend  to  be 
annoyed  in  his  business  by  the  New  York  custom-house,  and  that  he  should  do 
as  lie  pleased.    This  was  after  his  property  had  been  delivered  to  him. 

He  managed,  in  leaving  New  York  right  at  that  time,  to  take  to  Nassau  105 
bales  of  blankets  ;  and  1  have  a  copy  of  a  letter  from  a  party  in  Nassau  who 
says  those  blankets  contained  sabres  rolled  up  in  them,  and  that  at  that  time 
there  were  shipped  bales  of  hay  which  contained  coils  of  telegraph  wire.  This 
letter  has  been  received  within  the  last  week.  Those  105  bales  were  taken  on 
the  Governor  Bailey,  a  British  steamer.  They  were  entered  in  bond  in  the 
warehouse  department,  and  taken  out  as  such. 

After  I  commenced  investigating  the  matter  in  reference  to  the  bonding  of 
these  goods,  I  suggested  to  the  surveyor,  and  he  detailed  officers  by  the  consent, 
of  the  United  States  marshal,  to  examine  the  cargoes  of  steamers  which  were 
caught  running  the  blockade  w  hen  they  were  discharged,  and  to  make  a  return 
for  my  use,  with  the  marks  and  numbers  of  the  packages.  The  steamer  Mar- 
garet and  Jesse  was  caught  running  the  blockade  and  brought  to  New  York. 
The  officers  detailed  made  an  examination  of  the  cargo  and  their  return  was  sent 
to  my  office.  Comparing  the  marks  and  numbers  of  the  packages  constituting 
this  cargo  with  the  bonds  taken  in  the  collector's  office  of  the  parties  who  had  been 
shipping  goods  from  New  York  to  Nassau,  I  found  on  board  the  Margaret  and 
Jesse  the  marks  and  numbers  of  goods  which  I  identified  to  be  the  same  shipped 
by  Louis  Benjamin  and  A.  Hoffnung  from  New  York.  I  found  that  the  bond 
given  by  A.  Hoffnung,  No.  4712,  amounting  to  $28,796,  covered  the  goods 
shipped  by  Hoffnung,  which  goods  were  landed  from  the  Margaret  and  Jesse, 
the  vessel  seized  in  running  the  blockade.  Those  goods  are  now  at  the  Union 
stores  at  Brooklyn. 

That  bond  is  signed  by  Win.  A.  Smalley  and  Louis  Benjamin,  as  sureties. 
On  a  subsequent  examination  I  ascertained  that  that  bond  should  have  been 
given  for  $83,757  72,  whereas  it  was  given  for  only  $28,796.  The  goods  cov- 
ered by  that  bond  were  bought  on  the  order  of  Major  Walker,  an  agent  of  the 
confederate  government,  and  now  in  St.  George's,  Bermuda. 

This  Mr.  W.  A.  Smalley,  spoken  of,  was  a  debenture  clerk  under  the  sur- 
veyor up  to  the  15th  of  December  last.  At  the  time  of  the  execution  of  this 
bond  he  held  that  office.  He  was  a  very  intimate  friend  of  A.  M.  Palmer,  pri- 
vate secretary  of  the  collector.  Palmer  and  Smalley  were  together  about  the 
building.  Mr.  Smalley,  for  two  or  three  years,  was  standing  about  Mr.  Palmer's 
office,  talking  to  applicants  for  office,  &c.  He  was  busy  about  there,  and  1 
found,  in  the  examination  of  these  bonds,  that  Mr.  Smalley  had  taken  Mr.  H. 
B.  Stanton's  place  at  times.  There  is  a  large  number  of  these  bonds  upon  which 
Smalley  appears  as  notary  public,  before  whom  the  acknowledgment  was  taken. 
There  is  also  a  large  number  of  these  bonds  upon  which  Palmer  appears  as 
notary  public.  There  was  a  known  intimacy  between  Mr.  Palmer  and  Mr. 
Smalley  ;  they  were  familiar  with  the  business  of  this  bond  desk;  and  it  is  an 


5JEW  YORK  CUSTOM  HOUSE. 


71 


ascertained  fact  that  they  were  very  intimate  with  Mr.  Louis  Benjamin.  All 
those  parties  were  on  very  intimate  social  relations,  as  will  appear  by  Mr. 
Smalley's  affidavit.  I  had  heard  from  Nassau — I  saw  it  staled  in  the  Bermuda 
Herald,  and  heard  it  from  other  sources — that  it  cost  Wolf  a  great  deal  of  money 
to  get  his  goods  through  the  custom-house.  Mr.  Wolf  stated  that  it  cost  him 
five  hundred  pounds  to  clear  the  A.  V.  Goodhue.  In  giving  the  orders,  Wolf 
stated  to  the  parties  that  he  had  facilities  for  getting  goods  through  the  custom- 
house. 

From  all  these  facts  taken  together  I  deemed  it  proper  to  lay  the  information 
before  General  Dix,  in  connexion  with  the  marshal.  The  marshal  had  informa- 
tion in  relation  to  Eneas  and  J.  0.  Rahming,  who  had  been  largely  engaged  in 
the  shipment  of  goods.  The  facts  were  laid  before  General  Dix  and  he  issued 
an  order  for  the  arrest  of  Louis  Benjamin,  Wm.  A.  Smalley,  Joseph  Eneas,  and 
J.  0.  Rahming. 

Washington,  January  28,  1864. 

George  Denison  recalled  and  examined  as  follows : 
Questions  by  the  chairman  : 

Question.  In  your  testimony  yesterday,  you  spoke  of  some  bales  of  blankets 
and  of  hay  shipped  to  Nassau.  How  could  those  bales  of  hay,  covering  tele- 
graph wire,  be  cleared  from  New  York  without  being  discovered? 

Answer.  Parties  desiring  to  ship  goods  to  Nassau,  Bermuda  and  Havana,  or 
to  ports  opened  by  the  proclamation  of  the  President  in  the  States  in  rebellion 
against  the  United  States,  come  to  the  custom-house  with  a  list  of  the  goods 
which  they  propose  to  ship.  That  list  of  goods  is  submitted  to  Mr.  Embree,  the 
deputy  collector  in  charge  of  the  clearance  bureau,  so  designated,  under  the  col- 
lector. Embree  makes  a  careful  examination  of  the  goods,  and  marks  such 
goods  as  are  contraband  and  absolutely  prohibited  by  the  proclamation  and  the 
law,  and  also  such  goods  as  can  be  shipped  by  the  giving  of  bonds.  The  parties 
put  the  goods  on  board  a  vessel,  and  the  manifest  "of  the  ship  is  made  out,  con- 
taining a  specific  statement  of  those  goods  by  marks  and  numbers  of  the  pack- 
ages and  cases.  This  ship's  manifest  is  taken  to  the  deputy  collector  in  charge 
of  the  bonding  of  goods,  and  he  makes  out  the  bond,  designates  the  security, 
and  he  is  the  party  who  must  be  satisfied.  Under  the  law  the  security  must  be 
satisfactory  to  the  collector;  and  the  deputy  in  charge  of  the  division  is,  in  effect, 
the  collector.  On  his  being  satisfied  of  that,  and  of  the  execution  of  the  bond, 
he  writes  on  the  manifest  where  it  has  been  checked  for  bonding  by  the  clear- 
ance deputy,  the  words  "  Bond  given,"  and  signs  it  with  his  initials.  That 
manifest  is  then  brought  into  the  naval  office  and  examined  by  my  clearance 
clerk  and  deputy,  and  if  found  to  comply  with  the  law  and  regulations,  it  is 
checked  by  those  parties  and  given  to  the  captain,  and  the  vessel  is  cleared.  I 
do  not  know  of  any  shipments  of  specific  articles.  I  know  that  in  the  course  ol 
business  the  manifests  must  show  to  my  office  that  the  requisite  bonds  have 
been  taken,  and  I  know  furthermore  that  the  manifests  have  been  examined,  and 
if  there  has  been  any  oversight  on  the  part  of  the  collector's  clerk  in  leaving  out 
articles  contraband  of  war  which  should  be  bonded,  the  manifest  is  sent  back  by 
my  clerks  to  the  collector,  and  the  error  is  corrected.  This  explanation  of  the 
mode  and  manner  of  doing  business  is  the  only  explanation  I  can  give  of  that 
hay  shipment.  In  the  ordinary  course  of  business,  when  parties  come  to  the 
custom-house  to  ship  hay  to  any  of  the  ports  included  in  the  proclamation  of  the 
President,  or  to  a  foreign  port,  they  would  give  a  bond  for  the  hay,  and  the 
hay  would  be  cleared.  Goods  themselves  when  exported  are  not  examined, 
unless  there  is  information  that  the  manifest  is  fraudulent. 

Question.  Will  you  furnish  to  this  committee,  as  a  part  of  your  testimony,  a 
summary  of  the  report  made  to  you  by  your  special  deputy,  C.  S.  Franklin ;  a 


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NEW  YORK  CUSTOM  HOUSE. 


copy  of  the  affidavit  of  Captain  Byrne,  referred  to  in  your  previous  testimony, 
and  a  copy  of  the  abstract  of  bonds  which  have  been  exhibited  to  the  committee, 
marked  "D"! 
Answer.  I  will. 

The  witness  subsequently  furnished  to  the  committee. 

Testimony  of  De  Witt  C.  Graham. 

New  York,  February  29,  1864. 
DeWitt  C.  Graham,  a  witness,  was  duly  sworn  and  examined  as  follows: 
Questions  by  the  chairman  : 

Question.  Are  you  connected  with  the  New  York  custom-house  1 

Answer.  Yes,  sir;  I  am  inspector  of  customs. 

Question.  How  long  have  you  been  such  ? 

Answer.  Going  on  fifteen  years. 

Question.  What  are  the  duties  of  your  office  1 

Answer.  Our  duties  are  numerous.  As  inspectors  we  are  detailed  by  the 
surveyor  of  the  port  to  perform  certain  duties  principally  connected  with 
seizures  and  the  boarding  of  vessels  on  their  arrival  here. 

Question.  Do  you  proceed  in  boarding  vessels  from  your  own  knowledge  ? 

Answer.  We  are  regularly  assigned  to  that  duty.  On  the  arrival  of  a  vessel 
we  are  telegraphed  the  fact,  and  we  immediately  repair  to  the  vessel. 

Question.  Who  gives  you  instructions  ? 

Answer.  The  surveyor  of  the  port,  in  reference  to  that  duty,  and  he 
frequently  accompanies  us. 

Question.  Does  lie  give  the  instructions  invariably  1 
Answer.  Yes,  sir. 

Question.  Do  you  ever  receive  any  from  Mr.  Barney  1 

Answer.  I  have  never  received  any  from  him.  All  my  instructions  come 
through  the  surveyor. 

Question.  Any  instructions  from  Mr.  Denison  1 
Answer.  I  never  received  any  from  him. 

Question.  From  whom  do  your  instructions  come  in  reference  to  examination 
of  stores  and  the  seizure  of  goods  therein  ? 

Answer.  The  orders  generally,  and  almost  invariably,  come  from  the  naval 
officer.  Mr.  Kirk  is  special  aid  to  the  surveyor,  and  at  the  same  time  is  detailed 
at  Denison's  office  to  communicate  with  our  office,  and  I  know  that  frequently 
orders  come  from  the  naval  officer  to  us  through  Mr.  Kirk.  He  is  the  agent 
between  the  naval  office  and  the  surveyor's  office  and  us. 

Question.  State  to  the  committee  what  your  instructions  are  where  you  make 
seizures  on  land  and  on  board  of  vessels. 

Answer.  Frequently  the  surveyor  makes  direct  communication  to  us  that  he 
has  information  that  certain  parties  are  expected  to  arrive  here  in  a  certain 
vessel  from  a  foreign  port,  who  had  dutiable  articles,  or  would  be  likely  to  have 
such  articles  concealed  in  his  baggage  or  around  his  person.  With  that  informa- 
tion we  proceed  to  the  vessel  upon  its  arrival  and  overhaul  the  list  of  passen- 
gers. If  we  find  the  party  we  trace  him  out  and  examine,  not  only  all  his  effects, 
but  his  person. 

Question.  How  do  you  proceed  on  land  ? 

Answer.  In  most  instances  where  we  are  called  upon  to  act  upon  land  it  is  in 
consequence  of  false  entries  made  out  at  the  custom-house.  A  warrant  is  ob- 
tained, and  generally  four  or  live  of  us  in  company  go  to  the  store.  Formerly 
we  were  accompanied  by  the  naval  officer  and  surveyor.  After  that  we  were 
accompanied  by  the  deputy  naval  officer  and  deputy  surveyor.  More  recently 
we  have  gone  without  the  naval  officer  or  his  deputy,  and  are  accompanied  by 


NEW  YORK  CUSTOM  HOUSE. 


73 


Mr.  Brown,  deputy  surveyor.  Previous  to  starting,  Mr.  Brown  is  generally  sent 
for  by  the  naval  officer  to  receive  instructions.  Sometimes  I  have  received  in- 
structions directly  from  Mr.  Franklin,  deputy  naval  officer,  and  from  Denison, 
naval  officer. 

Question.  Can  you  tell  us  what  those  instructions  arc  in  a  given  case? 

Answer.  Formerly  we  went  for  the  purpose  of  making  an  examination  of 
papers  and  books,  but  subsequently  it  was  determined  to  lei  the  naval  officer 
make  the  examinations  after  the  books  and  papers  were  brought  to  the  custom- 
house. As  I  generally  considered  it,  we  were  sent  on  an  errand  to  make  a 
grab  of  whatever  we  could  lay  our  hands  upon  in  the  shape  of  books  and 
papers.  No  examinations  of  books  and  papers  have  been  made  by  us  recently. 
We  are  sent  to  take  the  books  and  papers  by  force,  if  necessary,  from  the 
parties. 

Question.  Do  you  yourself  know  whether  these  examinations  or  seizures  are 
not  sometimes  made  on  suspicion  ? 

Answer.  I  believe  that  in  nineteen  out  of  twenty  cases  the  seizures  are  made 
without  any  reasonable  ground  of  suspicion. 

Question.  Do  you  mean  to  state  just  what  you  say? 

Auswer.  I  believe  that  in  nineteen  out  of  twenty  cases  there  is  not  sufficient 
ground.  I  mean  by  that  to  say  that  if  the  magistrate  who  is  applied  to  to  issue 
the  warrant  were  to  inquire  of  the  applicant  what  information  he  was  acting 
on,  he  would  refuse  the  warrant. 

Question.  Who  makes  the  application  for  the  warrant  ? 

Answer.  Whoever  is  directed.  Of  late  I  have  refused.  Formerly,  under 
Hart,  I  made  application  for  warrants,  and  made  the  affidavit.  Hart  was  careful 
to  give  me  instructions.  He  would  call  me  into  his  office  and  show  me  where 
the  invoices  appeared  irregular,  and  upon  such  information  I  would  obtain  the 
warrants.  But  when  I  found  that  the  affidavit  was  not  based  upon  sufficient 
grounds,  I  declined  to  make  it. 

Question.  Who  makes  it  now  ? 

Answer.  Mr.  Kirk  has  made  it  very  recently.  Kirk  and  I  had  a  conversa- 
tion in  reference  to  making  these  affidavits,  and  I  told  him  if  I  were  in  his  place 
I  certainly  should  not  make  an  affidavit  until  I  had  more  definite  information 
upon  which  to  found  it.  He  informed  me  that  he  communicated  that  to  Deni- 
son, and  that  Denison  said  hereafter  he  should  be  satisfied  before  he  was  directed 
to  ask  for  a  warrant.  It  has  been  a  question  amoni;-  ourselves  why  we  should 
make  an  affidavit  where  we  had  not  sufficient  ground,  and  when  I  found  1  was 
being  used  for  that  purpose,  I  determined  not  to  do  so  any  longer. 

Question.  Did  any  particular  circumstance  occur  which  induced  you  to  de- 
cline ? 

Answer.  No,  sir.  I  saw  they  were  getting  very  loose  in  the  matter,  and  that 
they  directed  me  to  go  without  sufficient  information  to  satisfy  my  mind.  I 
suppose  they  were  merely  acting  under  suspicion,  and  I  believe  in  some  in- 
stances, if  1  had  been  asked  by  the  magistrate  if  I  had  sufficient  ground,  I 
should  have  been  obliged  to  have  answered  "no."  As  soon  as  I  discovered 
that  was  the  case,  I  declined  to  make  affidavit. 

By  Mr.  Rollins : 

Question.  Who  gave  the  orders  for  procuring  the  warrants  \ 

Answer.  The  naval  officer  or  his  deputy.  I  do  not  recollect  of  an  instance 
where  the  surveyor  has  directed  me  to  get  out  a  warrant  for  searching  a  store. 

Question.  Has  there  not  been  more  frequent  attempts  at  fraud  upon  the  rev- 
enue since  this  rebellion  commenced,  and  has  not  that  made  necessary  more 
rigorous  measures  in  the  matter? 

Answer.  I  do  not  know  that  attempts  have  been  more  numerous.  When  Mr. 
Hart  was  surveyor  our  business  was  greater  than  it  is  now — that  is,  that  branch 


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NEW  YORK  CUSTOM  HOUSE. 


of  it.  We  have  not  been  called  upon  for  some  months  upon  this  store  duty;  I 
suppose  it  was  because  of  the  anticipation  that  this  committee  would  come  hero. 

By  the  chairman  : 

Question.  Had  you  anything  to  do  with  the  seizure  of  the  goods  of  Eneas 
and  of  Benjamin  ? 

Answer.  Yes,  sir ;  something. 

Question.  You  stated  that  in  nineteen  out  of  twenty  cases  you  think  seizures 
have  been  made  without  reasonable  ground? 

Answer.  Yes,  sir ;  I  think  if  upon  application  made  to  the  magistrate  for  a 
warrant  we  had  stated  the  grounds  of  our  application,  the  magistrate  would 
have  refused  the  warrant,  although  it  turned  out  in  some  instances  that  a  fraud 
had  been  perpetrated. 

Question.  I  want  to  know  whether  you  have  any  knowledge  of  this  thing 
having  been  done  in  any  instance  for  any  purpose  than  appeared  on  the  face  of 
the  transaction — whether  from  vindictive  reasons  or  for  the  purpose  of  obtaining 
money  'I 

Answer.  I  do  not. 

Question.  Did  you  ever  have  a  suspicion  that  such  things  have  been  done  for 
that  purpose  1 

Answer.  I  believe  the  object  has  been  to  obtain  money. 
Question.  By  whom,  and  for  what  purpose  ? 
Answer.  By  those  most  interested  in  it. 

Question.  Do  you  mean  by  that  the  officers  of  the  custom-house,  in  order  to 
obtain  their  pro  rata  share  ? 

Answer.  I  think  they  may  have  been  actuated  by  a  desire  to  guard  the  in- 
terest of  the  government,  and  at  the  same  time  to  fill  their  own  pockets. 

Question.  Have  you  any  reason  to  believe,  and  do  you  believe,  any  of  these 
seizures  had  been  made  with  the  expectation  of  their  being  compromised  for 
that  purpose  % 

Answer.  I  cannot  say  that  I  know  that  any  such  thing  has  occurred. 
Question.  I  ask  you  whether  you  have  reason  to  believe  it  % 
Answer.  I  cannot  say  that  I  have.    I  believe  these  parties  desire  to  obtain 
money,  and  I  believe  they  desire  to  protect  the  government. 

By  Mr.  Le  Blond  : 

Question.  In  any  single  instance  in  which  you  were  directed  to  make  seizures 
were  you  so  directed  without  the  proper  officer  assigning  a  reason  why  it  should 
be  done  % 

Answer.  An  instance  occurred  recently,  the  case  of  Eneas,  in  Maiden  lane. 
In  December  or  January  last  I  accompanied  Brown  and  Isaacs  to  the  store  of 
Eneas.  Shortly  after  we  reached  there  we  commenced  examining  his  papers. 
I  asked  Brown,  the  deputy  surveyor,  what  papers  he  wanted.  He  said  he 
wanted  the  papers  relating  to  Nassau  and  Bermuda.  Benedict,  Eneas's  lawyer, 
came  there  and  wanted  to  know  by  what  authority  we  were  there.  I  asked 
Brown  what  authority  we  had  to  go  there.  He  said  he  had  received  none  ;  he 
said  he  had  received  some  instructions,  and  was  told  that  General  Dix  had  issued 
an  order.  I  suggested  that  a  note  should  be  addressed  to  Denison,  the  naval 
officer,  asking  him  to  designate  in  writing  what  papers  and  books  he  wanted. 
Brown  addressed  a  note  to  Denison,  and  Denison  sent  a  note  to  him,  and  there- 
upon the  matter  was  suspended,  and  we  left  the  store,  leaving  it  in  charge  of 
the  marshal  and  two  regular  officers.  Benedict,  while  there,  threatened  us  with 
a  suit;  said  that  we  were  there  without  authority,  and  that  Dix  had  issued  no 
order.  Brown  said  lie  had  no  authority,  and  that  he  had  received  his  directions 
from  the  naval  officer. 


NEW  YORK  CUSTOM  HOUSE. 


75 


Question.  Is  that  the  only  instance  you  remember  in  which  you  have  acted 
without  some  information  going  to  show  that  there  was  some  ground  of  sus- 
picion ? 

Answer.  We  generally  acted  under  a  warrant,  but  we  had  none  in  that  in- 
stance. 

By  Mr.  Rollins : 
Question.  Why  were  you  not  armed  with  a  warrant  ? 

Answer.  Mr.  Brown  said  General  Dix  had  issued  an  order.  T  asked  him  if 
he  had  a  copy  of  it  ;  he  said  he  had  not.  I  then  told  him  I  should  decline 
acting  further  until  he  got  an  wder  to  proceed  with  the  examination,  or  until 
he  wrote  to  Denison  asking  him  to  designate  what  books  and  [tapers  he  should 
take. 

Question.  Was  it  your  opinion  there  was  no  sufficient  ground  of  proceeding 
in  that  case? 

Answer.  I  did  not  know  whether  there  was  or  not.  For  my  own  protection 
I  wanted  some  written  authority. 

By  Mr.  Le  Blond: 

Question.  What  did  you  mean  by  saying  that  in  nineteen  cases  out  of  twent  y 
reasonable  cause  was  not  shown  to  the  magistrate  when  applications  were  made 
for  warrants  ? 

Answer.  The  idea  I  intended  to  convey  was  this:  that,  with  the  information 
I  had,  on  going  to  ask  for  a  warrant  from  a  magistrate,  I  would  not  have  been 
disappointed  or  surprised  if  the  magistrate  had  refused  to  grant  the  warrant 
upon  the  information  I  had  in  nineteen  cases  out  of  twenty. 

By  Mr.  Rollins: 

Question.  In  what  proportion  of  these  cases  has  the  suspicion  proved  to  have 
been  well  founded? 

Answer.  In  a  great  majority  of  them,  though  prima  facia,  there  was  not  a 
good  cause,  and  sufficient  information  was  nnt  given  to  me.  The  result,  how- 
ever, showed  that  the  suspicion  was  well  founded  in  a  great  majority  of  cases. 

Question.  What  is  your  compensation? 

Answer.  Three  dollars  a  day. 

Question.  Do  you  have  any  perquisites? 

Answer.  I  receive  mileage  for  boardiu";  vessels. 

Question.  How  much  ? 

Answer.  Ten  cents  a  mile  where  we  go  to  quarantine  for  the  purpose  of 
boarding  foreign  vessels. 

Question.  Do  you  receive  any  gratuity? 

Answer.  No,  sir. 

Question.  Do  you  take  any? 

Answer.  The  custom  here  is  usually  to  give  us  a  present  at  the  end  of  the 
year.  The  collector,  naval  officer,  and  surveyor  have  joined  together  and  for 
several  years  past  given  us  a  hundred  dollars  apiece. 

Question.  Do  you  ever  receive  anything  from  passengers,  owners  of  vessels, 
owners  of  goods,  or  importers? 

Answer.  No,  sir. 

Question.  What  do  the  fees  for  mileage  amount  to  a  year  X 

Answer.  On  an  average,  I  think  about  thirty-four  dollars  a  month — about 

four  hundred  dollars  a  year. 

Question.  Do  you  mean  to  say  that  the  present  you  receive  from  the  officers, 

the  four  hundred  dollars  received  from  mileage,  and  three  dollars  a  day  is  all 

the  compensation  you  have  ever  received  from  all  sources  since  you  have  been 

in  office  I 


76  NEW  YORK  CUSTOM  HOUSE. 

Answer.  Yea,  sir,  in  the  line  of  my  duty* 

Question.  Have  you  received  any  gifts  or  presents  sent  to  your  house  or 
room,  or  anything  of  that  kind  from  any  quarter,  for  anything  pertaining  to 
your  office  \ 

Answer.  No,  sir,  never. 

Question.  The  committee  do  not  desire  to  inquire  into  your  private  affairs, 
but  they  wish  to  know  what  you  have  received,  either  directly  or  indirectly, 
from  your  connexion  with  the  custom-house  ? 

Answer.  T  have  made  a  full  statement  of  that;  and  I  will  say  that,  living 
under  the  expectation  and  assurance  that  our  salary  would  he  increased,  1  have 
during  the  last  four  years  spent  of  my  own  individual  moneys  I  had  in  bank 
twenty-three  or  twenty-four  hundred  dollars  over  and  above  my  income. 

By  Mr.  Le  Blond : 

Question.  The  question  is,  whether  you  have  received,  directly  or  indirectly, 
any  gift,  any  present,  or  anything  of  that  kind,  from  any  source  whatever,  or 
any  black  mail  ? 

Answer.  No,  sir,  none  whatever. 

Question.  Do  you  know  of  any  man  connected  with  the  department  that 
has  I 

Answer.  Some  time  since  I  heard  that  a  charge  was  preferred  against  me  for 
receiving  some  money.  I  sat  down  and  addressed  a  note  to  Mr.  Bailey,  special 
agent  of  the  treasury,  asking  an  immediate  investigation  into  the  matter.  I  re- 
ceived no  reply,  and  I  went  to  the  surveyor  and  requested  him  to  see  Bailey, 
and*  Bailey  said  he  would  give  me  an  opportunity  to  explain.  A  few  days 
elapsed,  and  I  went  to  Denison  and  told  him  I  did  not  wish  to  remain  in  the 
custom-house  with  such  a  thing  as  that  hanging  over  me.  He  went  to  see 
Bailey,  and  Bailey  said  I  should  have  a  hearing.  He  said  he  did  not  think 
there  was  anything  in  it. 

Answer.  The  circumstances  were  these:  a  gentleman  came  up  to  me  on  the 
dock  at  Jersey  City,  and  said  he  had  a  friend  who  would  like  to  have  me  pass 
his  things.  He  said  he  was  very  much  engaged,  and  if  I  would  give  his  friend 
an  officer,  he  would  make  it  all  right.  I  told  him  no,  that  an  officer  could  re- 
ceive no  compensation  for  any  such  service.  There  was  a  ureal  crowd 
around,  and  I  saw  this  passenger  waiting,  and  T  directed  him  to  Buskirk, 
who  had  the  general  direction  of  these  things.  I  saw  Kirk  coining  down, 
and  I  asked  him  if  he  could  give  the  man  an  officer.  Kirk  went  off  and 
made  an  examination  of  his  effects.  While  I  was  engaged,  some  time 
after  this,  same  party  came  up  and  said  he  wanted  to  see  me,  and  handed 
me  something.  Says  I,  what  is  it?  He  said  it  was  all  right.  I  said  it  was 
not.  that  no  officer  could  receive  any  compensation  for  such  service  Some- 
body then  spoke  to  me,  and  the  person  went  off.  As  soon  as  I  got  through,  I 
went  up  to  the  dock  to  see  if  I  could  find  him.  I  was  taking  some  refreshments 
there,  and  some  of  our  officers  came  in,  and  among  them  Kirk.  I  went  up  to 
Kirk  and  said,  "here  is  some  money  I  have  received  to  give  to  you."  He  said, 
"what  is  it?"  I  said  I  did  not  know.  He  repeated  "what  is  it?"  I  said  it 
was  some  money  handed  to  me  by  somebody  who  had  more  money  than  he 
knew  what  to  do  with.  Some  parties  came  in  and  interrupted  him  then,  and 
he  said  he  would  see  about  it  by  and  by. 

Question.  What  was  the  amount  of  that  money  ? 

Answer.  Twenty  dollars. 

Question.  What  became  of  it? 

Answer.  I  advised  Kirk  to  hold  on  to  it,  and  we  all  advised  him  to  hold  on  to  it 
until  the  matter  was  disposed  of,  for  some  fuss  had  been  made  about  it.  1  con- 
sidered that  to  give  it  up  would  show  some  sense  of  guilt  about  it. 


NEW  YORK  CUSTOM  HOUSE. 


77 


By  Mr.  Le  Blond : 

Question.  Is  that  the  only  instance  you  know  of  that  kind  ? 

Answer.  I  will  say,  further,  that  I  had  an  offer  of  another  situation,  which  1 
was  obliged  to  decline  because  I  was  unwilling;  to  leave  the  custom-house  as 
long  as  any  imputation  of  that  kind  remained.  I  thought  I  was  treated  unkindly 
because  I  was  not  given  an  opportunity  to  explain  the  matter.  My  salary  is 
small,  and  I  am  perfectly  overwhelmed  with  duties.  We  have  been  promised 
from  time  to  time  a  participation  in  the  seizure  money,  and  also  that  our  salaries 
should  be  increased,  none  of  which  promises  have  been  realized  vet. 

By  the  chairman: 

Question.  Have  you  any  memorandum  of  your  transactions  connected  with 
the  custom-house. 

Answer.  I  have     Some  time  since  I  was  talking  with  Isaacs,  and  he  asked 
me  what  papers  I  had.    This  was  some  six  or  eight  weeks  ago. 
Question.  Before  or  after  this  committee  was  appointed? 
Answer.  It  was  six  or  eight  weeks  ago. 

Question.  AVas  it  before  it  was  rumored  that  there  was  to  be  a  custom  hous< 
investigation  that  this  conversation  took  place,  and  how  came  you  and  Isaac? 
to  have  the  conversation? 

Answer.  We  have  had  frequent  conversations  about  the  matter.  We  have 
an  interest  in  these  seizures,  and  if  we  can  establish  the  claim,  by  and  by,  we 
mean  to  do  it. 

Question.  Is  that  the  reason  you  keep  the  record? 

Answer.  That  is  one  reason. 

Question.  Have  you  a  memorandum  of  the  seizures  you  have  made  I 
Answer.  I  have.    I  had  six  or  eight  books  in  all. 
Question.  Have  you  them  yet? 
Answer.  Yes,  sir. 
Question.  Where  are  they? 

Answer.  At  my  residence  up  town.    I  tore  up  a  large  number  of  papers  and 
books  four  or  five  months  ago. 
Question.  What  for  7 

Answer.  Because  they  were  multiplying  on  my  hands. 
Question.  What  was  the  character  of  those  books  and  papers  ? 
Answer.  A  memorandum  of  all  transactions  here  in  the  custom-house  in  re- 
lation to  seizures  and  boarding  vessels. 
Question.  Recent  transactions? 

Answer.  Extending  back  six  or  eight  years.  A  large  proportion  of  them 
were  under  the  last  administration,  I  think. 

By  Mr.  Rollins  : 

Question.  You  board  vessels  when  they  come  into  port,  and  examine  not  only 
the  cargo  

Answer.  No  sir;  we  have  nothing  to  do  with  the  cargo,  we  only  examine 
personal  effects. 

Question.  Have  you  ever  known  an  instance  where  a  watch  or  watches,  oi 
any  property  whatever,  has  been  seized  and  then  delivered  up  on  payment  of  i 
sum  of  money  by  the  party  ? 

Answer.  That  is  the  way  these  things  are  generally  settled  here.  After  a 
seizure  is  made,  the  party  pays  the  full  amount  of  the  value  of  the  goods,  and 
then  receives  his  goods. 

Question.  What  I  mean  is,  whether  such  matters  are  not  sometimes  compro- 
mised for  less  than  the  value  of  the  goods,  the  officer  taking  a  sum  of  money  ? 

Answer:  No  sir;  I  have  heard  reports  of  a  great  deal  of  fraud  being  com- 


78 


NEW  YORK  CUSTOM  HOUSE. 


mitted  in  the  custom-house,  but  I  believe  they  are  in  a  great  measure  without 
foundation.  No  doubt  frauds  are  committed,  but  their  extent  is  very  much  ex- 
aggerated. I  do  not  know  of  my  own  knowledge  that  anything  has  been  done 
in  an  underhanded  way. 

Question.  During  the  fifteen  years  you  have  been  in  the  custom-house,  you 
do  not  know  of  a  single  instance  where  property  has  been  seized  and  the  mat- 
ter compromised  by  the  party  paying  a  sum  of  money  or  making  a  present  to 
the  officer? 

Answer.  Never;  not  the  officer  making  the  seizure.  In  two  cases  out  of 
three  the  parties  prefer  to  pay  the  full  value  of  the  goods  and  receive  the  goods. 
They  are  not  usually  articles  of  merchandise,  but  personal  effects — such  articles 
as  travellers  from  abroad  usually  bring  home,  and  which  are  of  more  value  to 
them  than  the  money.  We  seize  them  and  they  pass  into  the  hands  of  the 
naval  officer  and  collector,  and  I  believe  in  most  of  those  instances  the  parties 
pay  the  full  value  and  take  their  goods. 

Question.  "Who  determines  the  value? 

Answer.  The  appraiser. 

Question.  No  settlement  is  made  immediately  after  seizure,  and  upon  the 
spot  ? 

Answer.  No  sir;  the  collector  gives  order  for  the  appraisement,  and  the  ap- 
praiser comes  to  the  custom-house  to  appraise  them,  and  then  if  the  party  sees 
fit  to  pay  the  appraisement  he  takes  the  goods.  1  have  known  many  and  many 
such  instances. 

Question.  Do  you  know  whether  there  is  any  unfriendly  relation  existing 
between  Isaacs  and  Denison  ? 

Answer.  No,  sir;  Ihave  reason  to  think  that  Denison  thought  Isaacs  talked 
a  little  too  much,  and  hence  directions  have  been  given  to  officers  obtaining  war- 
rants, not  to  let  Isaacs  know  anything  about  it. 

Question.  You  have  retained  your  office  through  various  changes  and  admin- 
istrations, and  I  desire  to  know  whether  you  have  ever  paid,  directly  or  indi- 
rectly, or  caused  to  be  paid,  directly  or  indirectly,  to  any  person  or  persons,  any 
sums  of  money  for  the  purpose  of  securing  your  appointment  or  retaining  it. 

Answer.  Not  a  cent  or  a  dollar.  I  have  never  known  an  instance  where  an 
officer  has  paid  anything  for  obtaining  or  retaining  his  office,  and  I  probably 
have  as  much  knowledge  upon  this  subject  for  the  last  fifteen  years  as  any 
officer  in  the  custom-house. 

November  1,  1864. 

De  Witt  C.  Graham  recalled. 

By  the  chairman : 

Question.  Were  you  present  when  Mr.  Betts  was  arrested  % 
Answer.  I  was. 

Question.  When  was  the  arrest  made? 

Answer.  It  must  be  a  year  or  more  ago  ;  I  should  think  it  was  in  February 
or  March  of  last  year.  We  had  information  that  a  large  quantity  of  invoices 
and  papers  of  record  had  been  taken  from  the  custom-house  at  different  times 
previous  to  our  going  to  the  office  of  .Air.  Pride,  who  was  deceased  at  that  time, 
ilis  son  and  a  young  man  by  the  name  of  Oentan  had  succeeded  to  the  business. 
1  think  Mr.  Denison,  Mr.  Franklin,  Mr.  Charles  Kelley,  inspector,  and  Mr. 
Jsaacs  and  myself  went;  there  may  have  been  one  or  two  others.  We  went 
there  and  took  possession  of  the  place,  and  finally  Mr.  Denison,  t  he  naval  offi- 
cer, sent  for  Mr.  Oentan,  and  when  he  came  in  saluted  him  in  this  way  :  "  You 
d — d  scoundrel,  we  have  got  you  now  where  we  can  send  you  to  State  prison." 
The  man  was  very  much  excited,  and  wanted  to  know  what  the  matter  was; 
that  he  could  explain  everything.  lie  sent  for  his  brother  and  father,  and  they 
advised  him  to  disclose  anything  he  knew  in  relation  to  any  frauds  or  robberies 


NEW  YORK  CUSTOM  HOUSE. 


79 


committed  at  the  custom-house.    On  looking  round  the  office  Mr.  Isaacs  raised 
up  the  lid  of  the  desk,  and  there  lie  discovered  a  large  number  of  these  papers 
which  had  been  abstracted  from  the  custom  house. 
Question.  What  was  the  character  of  the  (tapers  ? 

Answer.  They  were  invoice/mtries  ;  I  did  not  examine  them  particularly; 
I  should  judge  they  were,  from  their  general  appearance.  Some  confession  was 
made;  I  don't  know  what  it  amounted  to.  Mr.  Denison  directed  Mr.  Kelley 
and  myself  to  go  over  to  the  custom-house,  and  if  we  found  there  a  man  by  the 
name  of  Betts,  who  had  been  in  the  habit  of  abstracting  these  papers,  (1  suppose 
an  acknowledgment  had  been  made  by  Mr.  Centan,)  to  take  him  up  to  his  ( J  Uni- 
son's) room..  As  we  were  leaving,  I  said  to  Mr.  Kelley,  "  we  have  no  warrant 
to  arrest  this  man;"  "never  mind,  Mr.  Denison  says  we  must  take  him." 
I  said,  "I  don't  know  about  that;  it  is  a  kind  of  business  that  don't  suit  me." 
I  was  persuaded,  however,  went  up  to  the  custom-house;  saw  him  come  in; 
Kelley  pointed  him  out  to  me;  went  up  to  him  and  said,  "the  naval  officer 
wants  to  see  you."  He  made  some  little  resistance,  but  I  put  my  arm  around 
him  and  took  him  up  stairs.  Mr.  Denison  told  him  pretty  much  the  same  thing* 
that  he  did  to  Centan — that  he  would  have  to  send  him  to  State  prison,  unless 
he  owned  up  everything,  and  disclosed  under  what  circumstances  he  had  ab- 
stracted the  papers. 

By  Mr.  Le  Blond: 
Question.  What  were  the  confessions  he  made  ? 

Answer.  That  is  more  than  I  can  tell  you.  He  said  to  me:  "  Mr.  Graham, 
I  have  always  treated  you  well,  what  had  I  better  do  in  the  matter?"  I  said 
to  him,  if  you  have  anything  to  disclose,  the  probability  is  that  it  will  be  better 
for  you  to  do  it,  otherwise  you  will  be  punished;  and  he  said:  "I  will  take 
your  advice,"  and  went  into  the  other  room.  What  transpired  there  with  Mr. 
Denison  I  don't  know.  He  was  a  petty  broker  at  the  custom-house,  who 
would,  for  fifty  cents  or  a  dollar,  obtain  a  paper  for  a  party. 

Question.  What  do  we  understand  by  getting  a  paper  for  fifty  cents  or  a  dol- 
lar ? 

Answer.  I  think  some  clerks  were  dismissed  from  the  custom-house  for  allow- 
ing papers  to  be  taken.  The  business  used  to  be  done  very  loosely,  much  more 
so  than  now.  Any  person  could  go  at  one  time  and  ask  for  the  entries  of  such 
a  vessel;  the  clerk  would  pass  them  over  to  him,  and  he  would  watch  his  op- 
portunity and  abstract  either  the  invoice  or  the  entry. 

By  Mr.  Kollins : 

Question.  At  what  time  were  such  things  practiced? 
Answer.  Ten  or  twelve  years  ago. 
Question.  It  is  not  a  recent  thing  ? 
Answer.  No,  sir. 

Question.  Do  you  mean  to  say  that  these  papers  you  found  in  Centan  & 
Pride's  office  had  been  stolen  from  the  custom-house? 
Answer.  Yes,  sir. 
Question.  How  long  since  ? 

Answer.  I  judge  up  to  within  two  or  three  years  of  the  time  that  we  seized 
them. 

Question.  Nothing  of  recent  occurrence  ? 

Answer.  Nothing  more  recent.    I  did  not  make  an  examination  of  them.  I 
took  them  up  casually. 

By  Mr.  Le  Blond  : 

Question.  You  say  that  he  is  in  the  custom-house  now  ?  • 
Answer.  Yes,  sir. 


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NEW  YORK  CUSTOM  HOUSE. 


Question.  What  is  lie  doing  there? 

Answer.  Pursuing  the  same  broker's  business — a  petty  business — he  does  not 
hold  any  position  there;  he  may  be  a  clerk  for  some  broker. 

By  Mr.  Rollins: 

Question.  When  seizures  were  made  on  land  of  papers,  books,  &c,  and  they 
were  taken  possession  of,  were  you  ever  instructed  by  anybody  in  the  custom- 
house or  connected  with  it  to  suggest  to  the  parties  the  employment  of  certain 
lawyers  as  counsel  ? 

Answer.  No,  sir. 

Question.  Were  you  ever  requested  to  advise  parties  to  settle  by  the  employ- 
ment of  certain  lawyers  ? 
Answer.  No,  sir. 

Question.  Did  you  ever  know  of  a  transaction  of  that  kind  ? 

Answer.  No  sir ;  not  of  my  own  knowledge.  I  knew  it  from  others.  1 
have  known  it  from  Mr.  Isaacs,  when  he  used  to  be  in  constant  communication 
with  Mr.  Denison  and  with  Mr.  ll<>vt. 

Question.  What  was  the  object  of  employing  certain  counsel  ? 

Answer.  The  object,  as  1  concluded,  and  as  I  think  you  will,  was  to  get  the 
right  kind  <>t'  men  w  ho  would  be  a  little  unscrupulous  in  the  settlement  of  cases, 
and  who  would  look  to  their  interests  as  much  as  they  would  to  their  clients*. 
This  was  a  thing  which  I  always  discountenanced. 

By  the  chairman  : 

Question.  What  was  the  object  in  selecting  these  men  who  were  in  the  habit 
of  being  employed  in  these  cases?  Was  it  supposed  that  they  had  facilities  for 
closing  up  these  matters  better  than  others  who  derived  the  benefit  from  it  ? 

Answer.  Let  me  tell  you  one  instance  when  Mr.  Hoyt  was  collector  which 
opened  my  eyes  to  it.  My  brother,  John  Graham,  practicing  in  this  city,  was 
recommended  by  one  of  the  parties  who  happened  to  be  present  on  the  seizure 
of  a  store  in  Warren  street ;  this  man  went  off  and  employed  my  brother.  Mr. 
Isaacs  was  advised  by  one  of  the  heads  of  the  department  that  the  parry  should 
not  go  to  Mr.  Graham,  but  to  somebody  else.    I  don't  knowr  who  it  was. 

Question.  What  particular  benefit  was  it  to  Mr.  Hoyt,  or  to  any  other  custom- 
house officer,  that  certain  men  should  be  employed  ? 

Answer.  As  in  this  particular  instance  I  refer  to,  I  think  if  my  brother  had 
got  that  case  he  would  have  fought  it,  and  there  would  have  been  no  settle- 
ment. 

By  Mr.  Rollins : 

Question.  It  was  to  enable  the  government  to  settle  more  easily  ? 
Answer.  Yes,  sir. 

Question.  Does  that  practice  still  prevail  ? 
Answer.  I  do  not  think  it  does. 

By  the  chairman : 

Question.  Was  there  anything  about  these  men  being  employed  that  inured 
or  resulted  to  the  benefit  of  any  person  connected  with  the  custom-house  spe- 
cifically ? 

Answer.  Not  that  I  know  of. 

Question.  It  was  a  government  convenience,  and  not  an  individual  benefit  ? 
Answer.  I  suppose  so. 

Question.  Give  us  one  instance  where  it  was  an  individual  benefit. 
Answer.  I  have  given  you  the  name  of  a  party  employed  outside  of  the  ring, 
and  that  did  not  appear  to  suit  the  heads  of  the  department. 
Question.  I  want  to  know  the  motive  why  it  did  not  suit? 


NEW  YORK  CUSTOM  HOUSE. 


81 


Answer.  I  cannot  tell  you. 

Question.  Did  the  objection  assume  the  form  of  words,  so  that  you  could  tell 
us  what  it  was  ? 

Answer.  I  don't  know  what  was  the  reason. 

By  Mr.  Le  Blond  : 

Question.  Is  the  firm  of  which  Mr.  Barney  is  a  member,  (Barney,  Butler  & 
Parsons,)  one  of  the  firms  that  they  generally  refer  these  men  to? 
Answer.  No,  sir. 

Question.  Has  that  firm  much  business  to  do  in  the  adjustment  of  these  cases  ? 

Answer.  I  don't  think  they  have.  I  don't  recollect  of  even  one  case  myself. 
I  have  heard  the  name  of  one  mentioned.  Mr.  Craig  was  one  party;  Mr.  Dun- 
ning and  Mr.  Kaufman  are  other  parties  who  were  generally  recommended. 

By  the  chairman: 

Question.  Has  not  the  naval  officer  a  law  partner — Mr.  Starr? 

Answer.  Yes,  sir;  an  examination  was  referred  to  him  the  other  day  in  the 
matter  of  complaint  against  some  officers  for  allowing  some  goods  to  be  landed 
after  having  been  marked  as  public  stores.  After  they  were  delivered  to  a  party 
claiming  to  be  the  owner,  it  turned  out  to  be  a  matter  of  robbery. 

Question.  Is  he  not  connected  with  the  custom-house  in  some  way? 

Answer.  I  don't  know  ;  I  think  very  likely,  from  the  fact  of  this  matter  being- 
referred  to  him  to  take  affidavits,  to  make  inquiries  in  relation  to  it. 

Question.  This  case  to  which  I  first  called  your  attention,  (Steinberg  &: 
Lichenstodter,)  do  you  know  how  this  was  settled  ? 

Answer.  By  Steinberg  paying  $2,500. 

Question.  Where  did  you  get  that  sum? 

Answer.  I  think  Mr.  Isaacs  either  communicated  it  to  me,  or  I  got  it  from  my 
book  or  from  his  own  book ;  I  have  no  personal  knowledge  of  it. 

Question.  Are  there  any  other  transactions  of  the  like  character  that  you 
know  of? 

Answer.  No,  sir.  I  know  of  the  case  of  Mr.  Pitkin,  who  expressed  a  desire 
to  see  me,  and  I  went  to  see  him.  He  told  me  that  he,  together  with  Mr.  Lyon, 
were  determined  to  report  the  proceedings  in  the  case  to  Congress  or  the  Secre- 
tary of  the  Treasury,  and  demand  an  investigation.  He  showed  me  a  paper 
which  he  was  preparing,  and  he  said  he  had  been  robbed  of  every  cent  he  had, 
and  he  was  determined  not  to  submit  to  it. 

Testimony  of  Morris  SoJier. 

Wednesday,  March  2,  1864. 

Morris  Sober  sworn  and  examined. 

By  the  chairman : 
Question.  What  is  your  business  ? 

Answer.  Am  a  member  of  the  firm  of  William  H.  Lyon  &  Co.,  15  and  17 
Cortland  street.  Importers  to  some  extent,  but  our  business  is  generally  in 
American  goods. 

Question.  Yrou  do  custom-house  business  through  a  broker  ? 

Answer.  Yes,  sir. 

Question.  Have  you  ever  experienced  any  unusual  delay  in  getting  your  goods 
through  the  custom-house  ? 

Answer.  We  have  sometimes  ;  we  have  been  delayed  for  some  weeks . 
Question.  Do  you  know  of  any  especial  cause  for  that  ? 
Answer.  No,  sir. 

H.  Rep.  Com.  Ill  6 


s-2 


NEW  YORK  CUSTOM  HOUSE. 


Question.  Have  you  ever  had  your  books  and  papers  and  your  store  taken 
possession  of? 

Answer.  Yes,  sir. 
Question.  When  was  it  ? 

Answer.  It  was  last  fall  some  time  ;  the  exact  date  I  cannot  give  you  now. 
.1  une  "2,  1S62,  as  per  order  book,  we  ordered  an  invoice  of  French  goods  of  Enoch 
&  <  >ppenheim,  of  Paris,  amounting  to  about  8600,  on  which  there  was  a  commis- 
sion of  three  per  cent,  added,  and  we  received  an  invoice  therefor,  duly  passed 
at  the  custom-house.  Some  time  after  that  invoice  had  been  received,  we  received 
information  that  instead  of  three  per  cent.,  as  charged,  they  charged  us  five 
per  cent.  We  paid  the  right  duty,  as  we  supposed,  on  three  per  cent,  commission, 
and  we  thought  that  was  all  the  commission  required  to  be  added.  Some  time 
last  fall  (the  exact  date  I  don't  now  recollect)  Mr.  Brown,  accompanied  by  five 
others  who  said  that  they  were  custom-house  officers,  came  to  our  store,  demand- 
ed our  books  and  papers,  took  them  away,  and  placed  two  officers  in  charge  of 
our  store  to  relieve  each  other,  they  taking  the  keys  at  night.  This  state  of 
things  continued  for  a  week  or  more.  Shortly  after  these  officers  came  in,  one 
of  the  party,  Mr.  Isaacs,  I  think  they  said  his  name  was,  called  me  one  side  and 
told  me  that  the  easiest  way  to  get  rid  of  this  was  to  go  to  Craig  &  Webster  (whose 
names  he  wrote  down  on  a  piece  of  paper)  and  tell  them  that  it  was  one  of 
rsaacs's  cases,  and  they  would  fix  it  all  right ;  I  think  he  said  that  they  would 
understand  all  about  it  and  fix  it  all  right. 
By  Mr.  Rollins : 

Question.  Did  you  follow  the  advice  ? 

Answer.  We  did  not.  I  think  the  next  day  I  met  Mr.  Isaac*  and  Mr.  Graham 
in  the  store  of  Messrs  Butler  &  Pitkin,  who  I  knew  had  a  similar  case,  and  I 
said  in  their  presence  that  I  thought  if  we  sent  an  agent  to  Washington  to  re- 
present that  we  had  fallen  into  an  unintentional  error,  the  fines  would  be 
remitted. 

By  Mr.  Le  Blond  : 

Question.  What  was  the  difference  between  the  amount  paid  and  the  amount 
claimed  ? 

Answer.  I  think  it  was  821  91. 

Question.  How  was  the  case  finally  disposed  of? 

Answer.  By  our  paying  -SG00,  the  full  amount  of  the  value  of  the  goods.  What 
induced  us  particularly  to  pay  it  was  on  account  of  the  custom-house  officers  re- 
maining in  possession  of  our  store  and  wearing  the  badges  of  their  office,  as  we 
deemed  it  detrimental  to  our  business. 

Question.  Did  your  lawyer  advise  you  to  pay  this  $600  ? 

Answer.  The  advice  was  to  pay  it  under  protest ;  they  would  not  receive  the 
money  at  the  custom-house  under  protest ;  it  was  so  stated. 

Question.  I  want  to  know  why,  in  adjusting  this  account  with  the  house  upon 
the  other  side  of  the  water,  you  should  have  paid  the  amount  named  upon  a  little 
slip  of  paper  accompanied  by  no  instructions  and  no  explanations,  and  entirely 
ignore  an  invoice  made  out  in  regular  form  ? 

Answer.  We  paid  the  duty  on  three  per  cent,  commission,  supposing  that  was 
all  that  was  required  by  the  custom-house  authorities. 

Question.  Your  idea  was,  that  the  law  fixed  that  amount  ? 

Answer.  Yes,  sir. 

By  the  chairman  : 

Question.  Has  your  firm  been  in  the  habit  of  reporting  errors  in  your  favor 
to  the  department  and  paying  them  over,  previous  to  this  transaction  and  subse- 
quently 1 

Answer.  We  have  in  several  instances  previous  to  this,  as  well  as  since  ;  we 
always  report  errors,  whether  they  are  for  or  against  us. 


NEW  YORK  CUSTOM  HOUSE. 


83 


Question.  Do  you  know  of  any  abuses  practised  in  the  New  York  custom- 
house, to  which  you  can  call  the  attention  of  the  committee  ? 

Answer.  There  is  one  I  can  mention,  and  that  is  the  abstraction  of  goods  from 
packages  ;  we  have  had  numerous  cases  of  this  kind. 

Lucas  Thompson  sworn  and  examined. 

By  the  chairman: 
Question.  What  is  your  business  ? 
Answer.  That  of  importing  French  goods. 
Question.  How  long  have  you  been  in  that  business? 
Answer.  A  little  over  four  years. 

Question.  Have  you  ever  had  any  difficulty  in  passing  your  goods  through 
the  custom-house  ? 

Answer.  We  have  had  some  reason  to  complain. 

Question.  Do  you  know  of  any  money  being  paid  to  expedite  business  there  ? 

Answer.  We  are  so  entirely  at  the  mercy  of  custom-house  brokers  that  we 
do  not  care  to  make  much  of  a  story  about  it;  we  get  our  goods  now  in  a  rea- 
sonable time. 

Question.  When  was  it  that  you  had  reason  to  complain  of  the  treatment  of 
the  officials  in  the  New  York  custom-house'? 

Answer.  Just  about  the  opening  of  the  last  fall  season. 
Question.  In  what  particular'? 

Answer.  In  their  being  a  long  time  over  the  goods  and  taking  samples  from 
the  cases ;  I  complained  of  it  at  the  time. 

Question.  How  long  a  time  did  they  hold  them  after  they  arrived  before  you 
were  able  to  get  them  ? 

Answer.  About  three  weeks,  I  should  think. 

Question.  What  was  the  reason  assigned  for  the  delay? 

Answer.  None  at  all;  that  was  what  I  complained  of. 

Question.  Did  you  have  any  interviews  yourself  with  them  about  this  delay  ? 
Answer.  Only  down  at  the  place  in  Broad  street. 

Question.  Did  you  go  repeatedly  to  secure  the  permit  or  send  to  the  custom- 
house for  it? 

Answer.  Yes,  sir. 

Question.  Did  they  make  any  reply  ? 
Answer.  No,  sir. 

Question.  There  must  have  been  some  reply  ? 

Answer.  No  satisfactory  reply;  they  said  they  would  send  them  as  soon  as 
they  got  through. 

Question.  Where  did  you  apply  for  your  permit? 
Answer.  Up  stairs  in  New  street. 
Question.  Do  you  know  what  officer  you  applied  to  ? 
Answer.  I  generally  saw  Mr.  Phillips. 

Question.  Did  you  have  repeated  instances  where  goods  were  kept  three 
weeks  ? 

Answer.  They  did  not  keep  any  as  long  as  that  in  more  than  one  instance  ? 

Question.  About  what  length  of  time  is  necessary  after  the  landing  of  goods 
before  the  permit  can  be  granted  ? 

Answer.  In  Boston,  they  tell  me,  they  get  them  through  in  twenty-four 
hours. 

Question.  What  is  the  general  time  here  ? 

Answer.  We  sometimes  get  them  in  two  or  three  days. 

By  Mr.  Le  Blond : 

Question.  Was  there  at  this  time,  wliei*  this  delay  of  three  weeks  occurred 
that  you  speak  of,  a  great  pressure  of  business  in  the  way  of  importations  ? 


84 


NEW  YORK  CUSTOM  HOUSE. 


Answer.  I  should  not  think  that  it  would  be  as  heavy  as  in  the  spring. 

Question.  Did  you  go  to  any  custom-house  officer  and  complain  that  your 
goods  were  improperly  detained? 

Answer.  I  did  my  business  through  a  broker,  and  the  broker  did  the  pushing. 
I  thought  that  he  was  not  pushing  business  as  rapidly  as  possible,  so  I  went 
down  to  see  about  it. 

Question.  Who  was  your  broker  ? 

Answer.  Mr.  Curtan,  and  he  is  still  engaged  as  broker  for  me. 
Question.  Has  Mr.  Curtan  told  you  what  the  reason  was  for  the  change  by 
which  you  are  now  enabled  to  get  your  goods  through  much  quicker? 
Answer.  I  never  asked  him  the  question. 

By  Mr.  Rollins : 
Question.  How  long  have  you  employed  Mr.  Curtan  ? 

Answer.  Some  years;  my  partner  employed  him  before  I  was  in  the  business. 

Question.  Why  is  it  necessary  for  merchants  to  employ  these  brokers ;  why 
not  do  the  business  directly  themselves  ? 

Answer.  Because  it  takes  so  much  time;  that  is  one  reason ;  a  great  many 
merchants  do  their  own  business. 

Question.  Why  should  it  take  any  longer  for  a  merchant  to  do  it  than  a 
broker  ? 

Answer.  A  broker  can  put  fifty  entries  through  ;  if  I  had  but  one  entry  in  a 
week  I  could  not  spend  my  time  down  there  and  take  my  turn  to  put  that 
through. 

Question.  Have  you  heard  any  complaint  of  late,  within  a  few  months,  as  to 
the  mode  of  doing  business  there  ? 

Answer.  I  have  not ;  I  have  been  very  little  among  the  importers  myself,  as 
I  have  been  very  busy. 

By  the  chairman : 

Question.  Do  you  know  whether  there  is  such  a  practice  as  feeing  clerks  in 
the  custom-house  by  merchants? 
Answer.  I  do  not. 

Question.  Do  you  know  of  any  clerks  in  the  custom-house  that  are  in  the 
habit  of  receiving  them  ? 
Answer.  No,  sir. 

Question.  Does  your  broker  ever  tell  you  that  such  an  amount  of  money  is 
requested  to  enable  you  to  pass  goods  through  rapidly  ? 
Answer.  No,  sir. 

By  Mr.  Le  Blond : 

Question.  When  you  found  that  your  business  was  disposed  of  rapidly,  did 
you  make  any  inquiry  of  Mr.  Curtan  what  the  reason  was? 
Answer.  No,  sir. 

Question.  You  said  nothing  to  him  about  it? 

Answer.  I  said  nothing  to  him  about  it;  I  had  no  reason  to  complain  of  that. 
Question.  When  your  goods  did  not  come  within  the  proper  time  you  com- 
plained to  him  ? 
Answer.  Yes,  sir. 

Question.  Did  he  not  tell  you  why  he  could  not  get  them  through  ? 
Answer.  No,  sir. 

Question.  When  you  found  this  sudden  change  did  it  not  create  a  disposition 
on  your  part  to  inquire  what  brought  it  about? 
Answer.  No,  sir. 

Question.  Has  Mr.  Curtan  ever  called  upon  you  for  money  outside  of  the 
regular  fees  that  he  was  to  receive  from  you  for  transacting  your  business  ? 
Answer.  No,  sir. 


NEW  YORK  CUSTOM  HOUSE. 


85 


Question.  Where  is  Mr.  Curtan's  place  of  business? 

Answer.  The  corner  of  William  and  Pine,  over  King's  banking-house ;  his 
full  name  is  Charles  Curtan. 

By  the  chairman : 

Question.  Has  he  done  your  business  of  late  ? 
Answer.  Yes,  sir. 

Question.  You  do  not  do  it  directly  ? 

Answer.  No,  sir;  I  never  did  any  business  with  the  custom-house  directly. 

By  Mr.  Rollins : 
Question.  How  do  you  pay  your  broker  for  his  services  ? 
Answer.  So  much  for  an  entry. 
Question.  How  much  ? 

Answer.  $2  50,  I  think  it  is  ;  the  whole  thing  costs  about  $5. 

Question.  What  reason  did  you  suppose  existed  for  the  long  detention  of 
your  goods  in  the  custom-house  ;  you  had  some  idea  yourself  what  it  was  ? 

Answer.  There  was  nothing  said ;  they  fussed  about  it  a  long  while. 

Question.  If  you  were  impatient  for  your  goods,  it  is  very  natural  to  suppose 
that  you  made  some  demand  for  them  upon  the  custom-house  officials.  If  you 
made  such  a  demand,  what  reply  was  given? 

Answer.  It  yjas  just  tantamount  to  this — that  they  had  not  got  through  with 
them,  and  when  they  had  they  would  send  them  up. 

Question.  Was  there  any  pretence  on  their  part  that  you  were  attempting  to 
evade  the  law  ? 

Answer.  There  was  none  made  to  me. 

By  Mr.  Le  Blond: 
Question.  Was  there  made  to  any  one,  that  you  know  of? 
Answer.  No,  sir. 

By  Mr.  Rollins  : 

Question.  In  this  case  that  you  allude  to,  there  were  several  packages  of 
merchandise  ? 

Answer.  I  think  there  were  three  entries  by  either  two  or  three  steamers,  1 
am  not  certain  which. 

Question.  Can  you  fix  the  exact  date  of  this  occurrence  ? 

Answer.  I  think  it  was  in  October  or  November ;  I  cannot  give  you  the 
exact  dates  now. 

Testimony  of  J.  C.  Calhoun. 

Thursday,  March  3,  1S64. 

J.  C.  Calhoun  sworn  and  examined. 
By  the  chairman : 

Question.  Are  you  a  resident  of  the  city  ? 

Answer.  Yes,  sir. 

Question.  For  how  long  ? 

Answer.  About  sixteen  years. 

Question.  What  is  your  occupation  ? 

Answer.  Am  an  inspector  and  jobber  of  fancy  goods. 

Question.  Do  you  do  your  own  custom-house  business  ? 

Answer.  It  is  done  through  a  broker. 

Question.  Have  you  had  any  difficulty  in  getting  your  goods  through  tin- 
custom-house  ? 

Answer.  We  have  had. 


86 


NEW  YORK  CUSTOM  HOUSE. 


Question.  Have  the  custom-house  officials  at  any  time  taken  possession  of 
your  books  and  papers  1 
Answer.  Yes,  sir. 

Question.  Will  you  please  state  when  it  was,  when  and  why  it  was,  what 
they  did,  and  what  you  have  done  ? 

Answer.  The  seizure  took  place  about  the  first  of  April  last  year.  I  will 
state  here  that  importing  is  not  a  direct  branch  of  our  business,  but  we  have 
engaged  in  it  in  connexion  with  our  other  trade,  and  as  we  found  it  afforded 
us  profit,  we  have  extended  it  by  degrees,  until  now  we  do  considerable  business 
in  that  line.  About  four  o'clock  in  the  afternoon  of  the  day  of  this  seizure  the 
officers  from  the  surveyor's  office  came  into  the  store  and  took  possession  of  the 
store,  the  books,  papers,  &c.  We  gave  them  up  and  sent  down  one  of  our 
porters  with  them  to  the  custom-house.  We  gave  them  everything,  statements 
of  accounts  and  all.  The  proceeding  was  at  a  very  unusual  hour,  at  a  time 
when  we  could  not  get  any  advice  from  counsel.  The  thing  was  done  in  a  very 
abrupt  manner ;  and  after  the  time  of  closing  up,  Deputy  Surveyor  Brown,  I 
think,  came  in  and  took  some  trouble  to  examine  the  back  part  of  the  store  to 
see  whether  there  was  any  place  where  we  could  get  our  goods  out.  I  saw 
Judge  Woodruff  and  went  down  in  the  morning  and  proposed  to  give  bonds  to 
the  amount  of  §100,000  if  they  wanted — to  any  amount ;  they  did  not  want 
any  bonds. 

Question.  Who  was  the  party  that  you  saw  ? 

Answer.  I  saw  Mr.  Denison  ;  he  did  not  propose  to  treat  with  us,  but  turned 
us  over  to  Mr.  Franklin.  They  did  release  one  or  two  of  the  books  which  had 
no  reference  to  our  foreign  business.  The  trouble  was  this,  and  it  grew  out  of 
an  inadvertence  on  our  part :  We  were  importing  a  certain  line  of  goods, 
worsted,  from  J.  P.  &  E.  Westheads  &  Co.  They  do  a  mixed  business.  On  the 
manufacturing  business  they  allow  us  two  and  a  half  per  cent.;  on  the  worsted 
business  they  charge  us  three  per  cent,  commission  without  the  discount,  and 
it  is  made  up  in  another  way.  For  instance,  take  a  regular  commission  house, 
and  they  give  us  off  four  and  a  half  per  cent,  and  charge  us  two  and  a  half  per 
cent,  commission,  and  make  it  cash  at  the  date  of  the  invoice.  Westheads  gave 
us  nothing  off,  but  charged  us  two  per  cent,  commission,  and  allowed  us  four 
months  to  pay  it  in,  and  we  pay  at  any  time  from  four  to  six  months.  Instead 
of  making  it  an  interest  account,  the  interest  account  is  made  up  in  commis- 
sions. The  government  get  as  much  in  one  case  as  in  the  other ;  but  it  was 
irregular  in  making  it  up  in  this  way,  and  we  had  no  right  to  do  it. 

Question.  Did  you  know  that  you  had  no  right  to  do  it  ? 

Answer.  Xo,  sir;  I  supposed  the  thing  was  regular  from  their  being  a  mixed 
house,  as  they  were.  Some  of  the  correspondents  abroad  charged  us  three  per 
cent.,  and  some  charged  us  five  per  cent. 

Question.  What  is  the  amount  of  difference  between  you  and  the  government  ? 

Answer.  I  think  about  $300. 

Question.  What  did  you  pay] 

Answer.  $5,000.  We  made  up  our  minds  at  first,  after  we  proposed  to  give 
bonds,  to  contest  the  matter;  but  our  business  was  of  such  a  nature,  and  it  would 
be  so  great  an  annoyance  to  have  it  stopped  for  any  time,  that  after  consulta- 
tion with  Judge  Woodruff  and  Mr.  Sanford,  we  concluded  the  better  way  was 
to  settle.  If  I  am  not  very  much  mistaken,  the  remark  was  made  by  Mr. 
Franklin  that  it  would  be  better  for  us  ;  that  the  naval  officer  was  considered 
the  adviser  of  the  government,  and  was  authorized  to  compromise  these  things. 
I  went  down  with  Mr.  Sanford  to  see  what  could  be  done.  Mr.  Sanford  stated 
that  the  amount  claimed  by  the  government  was  very  small  ;  that  they  could 
not  think  we  had  any  intention  of  defrauding  the  government ;  that  it  was  an 
oversight  on  our  part ;  that  he  did  not  believe  the  government  wanted  to  be 
vindictive,  but  that  they  simply  wanted  to  protect  their  own  interests.    I  think 


NEW  YORK  CUSTOM  HOUSE. 


si  . 


I  am  not  mistaken  when  I  say  that  the  remark  was  thrown  out  by  them  that  it 
was  a  very  serious  matter,  indeed — a  criminal  matter — and  that  the  tiling  had 
better  be  settled.  I  then  had  a  consultation  with  Mr.  Sanford,  and  he  said  he 
presumed  they  wanted  some  three  or  five  thousand  dollars  to  settle.  We  did 
not  see  Mr.  Denison  at  all.  I  think  Mr.  Sanford  intimated  to  Mr.  Franklin 
that  we  were  willing  to  pay  three  thousand  dollars,  and,  as  near  as  I  can  recol- 
lect, the  remark  Mr.  Franklin  made  was  that  he  would  submit  the  proposition; 
but  he  did  not  think  it  would  be  of  any  use.  Mr.  Sanford  turned  to  me  and 
said  they  probably  wanted  five  thousand  dollars.  If  that  was  so,  it  would  be 
more  damage  to  us  to  be  tied  up,  and  we  had  better  pay.  We  said  it  was  more 
than  we  can  afford  to  submit  to,  but  we  would  pay  it.  The  proposition  was 
made,  and  in  five  minutes  after  Mr.  Franklin  came  back. 
Question.  Who  did  you  pay  it  to  ? 

Answer.  The  check  was  given  to  our  attorney;  I  think  the  check  was  in- 
dorsed by  Betts. 

By  Mr.  Rollins: 

Question.  What  was  the  amount,  of  property  upon  which  these  duties  were 
due  \ 

Answer.  As  I  would  have  to  follow  the  thing  back  for  two  or  three  years,  it  is 
almost  impossible  for  me  to  state  ;  it  may  be  $20,000  or  more ;  the  difference  was 
S300.  I  do  not  suppose  that  the  difference  was  even  that  if  you  figure  it 
closely.  When  I  went  down  to  the  custom-house  to  see  if  I  could  get  any 
relief,  I  met  with  a  man  by  the  name  of  Isaacs,  who  is  in  the  surveyor's  office. 
He  is  a  very  confiding,  clever,  soft-mouthed  Jew.  I  don't  know  but  Isaacs 
thought  I  would  like  to  take  up  with  any  lawyer  who  would  put  me  through. 
I  asked  him  what  this  was  about ;  what  would  come  of  it — a  very  natural  sort 
of  inquiry  to  make.  He  could  not  tell  me  what  it  was.  I  said  I  had  always 
done  my  business  through  my  broker,  and  I  supposed  it  was  all  straight.  Says 
he,  "It  requires  a  smarter  fellow  than  your  broker  to  help  you  out  of  this 
scrape."  "If  I  get  an  attorney,  who  had  I  better  get  ?"  I  asked  him.  "You 
had  better  get  Jim  Craig." 

By  the  chairman  : 
Question.  Have  you  had  any  difficulty  at  the  custom-house  since  ? 
Answer.  No,  sir. 

Question.  In  getting  your  goods  through,  or  anything  else  ? 
Answer.  No,  sir. 

Question.  Have  you  had  to  fee  any  of  the  clerks,  or  make  them  presents  I 
Answer.  There  have  been  one  or  two  examiners  in  the  store  occasionally, 
who  wanted  some  little  thing,  and  we  would  let  them  have  it.    It  has  been  a 
very  customary  thing,  if  they  wanted  some  little  trinket,  to  let  them  have  it,  but 
not  for  any  favors  granted. 

Testimony  of  Thomas  D.  Middleton. 

New  York,  March  4,  1S64. 

Thomas  D.  Middleton  sworn  and  examined. 
By  the  chairman: 

Question.  Will  you  please  tell  us  your  residence,  and  whether  you  do  business 
in  this  city  ? 

Answer.  I  reside  in  Brooklyn,  and  am  in  the  shipping  and  commission  busi- 
ness, exporting  and  importing. 

Question.  How  long  have  you  been  in  the  business  of  exporting  1 
Answer.  Since  1833. 


88 


NEW  YORK  CUSTOM  HOUSE. 


Question.  Have  you  been  concerned  in  shipping  goods  to  the  Bermudas  ? 
Answer.  Yes,  sir;  that  is  my  principal  business. 
Question.  You  have  had  occasion  to  give  bonds  ? 
Answer.  Yes,  sir. 

Question.  That  those  goods  should  not  go  in  improper  directions  ? 
Answer.  Y/es,  sir. 

Question.  And  those  bonds  have  been  cancelled — in  what  way  ? 

Answer.  They  have  not  had  the  consul's  certificate 

Question.  Some  of  them  have  been  cancelled? 

Answer.  In  an  irregular  way. 

Question.  How  many  of  them  ? 

Answer.  I  think  some  five  or  six. 

Question.  Who  procured  their  cancellation? 

Answer.  Our  surety. 

Question.  Who  is  he  1 

Answer.  Mr.  Conklin. 

Question.  Do  you  know  when  the  first  bonds  were  cancelled — at  what  time? 

Answer.  I  do  not  remember  distinctly ;  I  think  it  was  in  August,  soon  after 
the  bonding  system  commenced. 

Question.  Was  your  house  the  principal  of  the  bond,  and  Mr.  Conklin  the 
surety  ? 

Answer.  Yres,  sir. 

Question.  1  understand  you  to  say  that  your  surety  procured  the  cancellation 
of  these  bonds  1 
Answer.  Yes,  sir. 

Question.  What  interest  had  he  in  the  bonds  other  than  as  surety? 
Answer.  I  do  not  know  that  he  had  any. 

Question.  Was  he  paid  by  you  anything,  or  by  any  one,  for  going  as  your 
surety  ? 

Answer.  No,  sir;  there  was  an  understanding  between  us  (he  wras  an  old 
friend  of  ours)  that  he  would  serve  us  occasionally.  At  the  time  it  was  done 
there  was  nothing  said  about  it.  We  made  him  a  little  present  after  it  was  done 
for  each  bond. 

Question.  What  was  the  amount  of  the  present  ? 

Answer.  It  was  considered  equivalent  to  about  the  commission.  At  first  it 
was  done  without  that  consideration  ;  but  afterwards,  when  we  found  that  it  was 
going  to  be  an  established  thing,  we  made  up  our  estimate  to  pay  something 
which  would  be  equivalent  to  a  regular  commission.  I  think  on  the  first  bought 
we  generally  estimated  1J  per  cent. 

Question.  On  the  amount  of  the  invoice  1 

Answer.  Yres,  sir;  at  first  we  thought  it  might  be  possibly  a  temporary  thing, 
and  got  it  done  as  a  matter  of  friendship ;  but  when  it  seemed  likely  to  be  perma- 
nent, we  then  made  up  our  minds  that  we  should  make  a  charge  on  the  invoice 
to  pay  his  compensation:  we  considered  that  we  should  have  to  make  it  a 
system. 

Question.  Did  you  observe  that  practice  in  paying  commissions  on  all  the 
bonds  after  you  commenced  it  % 

Answer.  YTes,  sir;  after  the  thing  seemed  to  be  regularly  established,  we  did, 
and  charged  it  regularly  in  every  invoice.  All  the  invoices  brought  back  show 
the  charge  for  bonding,  and  at  length  we  established  it  regularly  at  2  J  per  cent., 
because  we  found  when  we  had  to  get  to  parties  

Question.  Who  were  the  other  parties  1 

Answer.  We  did  not  have  but  one  party  at  first.  Now  the  system  is  altered ; 
the  shipper  does  not  bond  at  all.  The  captain  bonds,  and  is  required  to  produce 
two  sureties — so  that  the  shipper  does  not  bond  at  all.  We  go  sometimes  as  one 
of  the  sureties. 


NEW  YORK  CUSTOM  HOUSE. 


89 


Question.  Did  Mr.  Conklin,  of  his  own  motion,  unprompted,  commence  and 
procure  the  cancellation  of  these  bonds  '? 

Answer.  The  first  he  did — in  fact  1  may  say  he  did  all  of  them  ;  he  suggested 
the  idea  that  some  persons  were  getting-  these  bonds  cancelled,  and  we  said 
"Very  well;  we  don't  like  to  be  in  a  worse  condition  than  other  people,"  and 
he  said  he  could  get  them  cancelled.  We  said  "Very  well;"  and  in  thai  way  it 
was  done  by  him.  lie  said  there  were  many  persons  he  had  heard  of  that  were 
doing  it;  Mr.  Stanton  easily  did  it. 

Question.  You  say  you  had  five  or  six  cancelled  ? 

Answer.  I  think  Mr.  Conklin  can  tell  you  exactly;  I  do  not  know  exactly, 
because  we  did  not  know  in  many  instances  ourselves  directly.  Upon  one  or 
two  occasions  we  did  know,  and  upon  the  others  we  took  his  word  for  it.  When 
it  was  done,  I  could  not  say. 

Question.  Were  not  the  bonds  brought  to  you  % 

Answer.  No,  sir. 

Question.  How  did  you  know  they  were  cancelled,  then  ? 

Answer.  Because  he  brought  my  signature  cut  out.  I  think  on  two  or  three 
we  considered  it  done.  I  think  he  said  that  they  could  not  be  found,  or  some- 
thing of  the  kind;  they  either  could  not  be  seen,  or  they  were  considered  as 
cancelled. 

Question.  Do  you  know  the  amount  he  paid  to  procure  the  cancellation  of 
these  bonds  ? 

Answer.  I  don't  know  exactly.    I  think,  as  far  as  my  memory  serves  me,  it 
was  about  five  or  six  hundred  dollars. 
Question.  On  all  the  bonds  % 

Answer.  On  the  whole;  at  any  rate,  it  was  not  over  $800. 
Question.  Did  you  give  him  the  money  in  advance  1 

Answer.  We  did  not  at  first;  he  did  it,  and  then  told  us  what  the  expense 
was,  and  we  paid  it.  I  do  not  remember  to  have  given  him  anything  in  advance 
at  any  time;  I  might  have  done  so;  I  do  not  think  so,  because  I  did  not  know 
what  the  terms  would  be  upon  which  he  was  to  procure  them,  and  when  it  was 
ascertained  he  told  us.  There  seemed  to  be  nothing  ascertained  what  it  was  going 
to  cost.  It  was  sometimes  fifty  or  seventy-five  dollars,  or  something  of  that 
sort.  The  idea  was,  as  we  thought,  that  it  would  be  about  per  cent.,  and 
sometimes  it  was  not  so  much  as  that.  Some  of  the  bonds  were  $50,  some 
$75,  some  $100,  or  something  in  that  neighborhood.  Sometimes  it  would  be 
some  days  after  the  thing  was  done  before  we  knew  what  we  had  to  pay. 

Question.  Did  you  have  any  communication  or  correspondence,  by  letter  or  by 
word  of  mouth,  with  anybody  else  with  reference  to  the  cancellation  of  these 
bonds  ? 

Answer.  No,  sir,  except  through  Mr.  Conklin. 

Question.  Do  you  recollect  when  the  practice  ceased,  or  when  he  was  unable 
to  procure  the  cancellation  of  them  1 

Answer.  It  was  after  five  or  six  were  done. 

Question.  Do  you  know  the  reason  why  no  more  could  be  obtained  ? 

Answer.  No,  sir;  I  don't  know  why  it  ceased.  I  do  not  think  there  were 
three  or  four  done  when  I  quit  New  York  and  went  out  to  Bermuda  <>n  a  visit, 
and  I  think  in  my  absence  there  were  two  or  three  more  done;  it  ceased  before 
I  got  back.  I  don't  know  why,  nor  did  I  ever  ask  anything  more  about  it. 
The  principle  tiling  that  influenced  our  minds  in  consenting  to  the  thing  was  this — 
the  difficulty  of  getting  from  our  correspondents  the  means  of  cancelling  the 
bonds;  it  was  not  with  the  slightest  idea  that  our  shipments  were  going  south. 
Our  business  is  very  much  divided ;  we  perhaps  have  a  hundred  different  corre- 
spondents to  whom  we  ship  a  great  many  small  shipments,  many  of  whom  live 
in  the  country  back  from  the  sea-ports,  and  we  anticipated  gn  at  difficulty  in 
ever  getting  back  the  papers  so  as  to  enable  us  to  cancel  these  bonds.    In  a 


90 


NEW   YORK   CUSTOM  HOUSE. 


little  while  we  found  it  so  difficult  that  we  advised  them  all  that  we  had  bonded 
for  them,  and  that  they  must  send  the  documents  in  order  to  have  them  cancelled. 
We  have  those  documents,  with  the  exception  of  a  very  few  persons,  who  said 
that  it  was  none  of  our  business  to  bond  for  them.  I  dare  say  we  have  got 
fifty  or  one  hundred  of  these  papers  complete. 

Question.  Since  the  rebellion  commenced,  how  has  your  business  been  af- 
fected— increased  or  diminished? 

Answer.  In  some  measure  increased. 

Question.  Has  the  number  of  your  agents  or  consignees  increased  likewise  I 
Answer.  Our  business,  I  might  say,  always  increases  every  year  ;  we  have, 
perhaps,  some  accessions  ;  some  die,  and  some  go  to  other  agents. 

Question.  Will  you  indicate  to  the  committee  briefly  what  lias  been  the  char- 
acter of  the  goods  you  have  shipped  during  this  period  of  which  you  speak — 
since  1S33  generally  ?  I  suppose  there  has  been  a  certain  line  of  trade  that  you 
have  had. 

Answer.  We  have  been  in  the  same  trade.  The  articles  that  we  have  shipped 
have  been  numerous ;  breadstuff's,  salted  provisions,  all  the  staples ;  butter, 
cheese,  hams,  everything  in  the  provision  line  which  would  suit  a  country  gro- 
cery store.  Very  much  of  our  trade  has  been  in  the  provision  line — the  prin- 
cipal part  of  it. 

Question.  Have  you  shipped  dry  goods  ? 

Answer.  It  is  very  rare  that  we  have  shipped  any  dry  goods. 

Question.  I  would  ask  you  whether  the  character  of  your  shipments  has 
changed  since  the  rebellion  ? 

Answer.  It  has  only  changed,  according  to  our  observations,  in  two  respects 
of  late.  Within  the  last  two  years — perhaps  not  as  long  ago  as  that — we  had 
been  in  the  habit  of  importing  rum  in  bond  and  a  good  deal  of  brandy.  In 
consequence  of  the  charges  upon  the  importation  of  these  articles,  they  have 
imported  more  whiskey  and  ale.  These  are  the  only  two  important  points  in 
which  there  has  been  any  change  made  in  the  character  of  the  articles  that  we 
have  been  in  the  habit  of  shipping.  In  regard  to  the  increase  of  our  agents, 
there  have  been  no  accessions  that  I  know  of  in  the  number  of  our  correspond- 
ents beyond  the  average  we  have  ever  had.  Perhaps  in  the  course  of  a,  year 
we  may  get  three,  four,  or  five  new  correspondents.  I  do  not  think  that  during 
the  past  year  we  have  had  five  new  correspondents. 

Question.  Does  this  class  of  trade  embrace  boots  and  shoes  ? 

Answer.  It  has  always  embraced  some  ever  since  we  have  been  shipping 
American  shoes. 

Question.  Does  it  embrace  clothing  ] 

Answer.  No,  sir. 

Question.  Blankets  ] 

Answer.  No,  sir ;  only  occasionally  a  few  suits  of  clothes. 
Question.  Have  you  shipped  any  blankets  ? 
Answer.  No,  sir. 

Question.  Does  it  include  filling  orders  for  what  is  termed  "contraband" — 
lead,  powder,  shot,  telegraph  wire  1 

Answer.  Nothing  of  the  sort,  and  the  boots  and  shoes  are  for  private  parties. 
We  have  never  shipped  any  army  shoes  ;  nothing  but  fine  shoes.  Mr.  Burt  is 
the  man  we  have  been  getting  them  from  for  a  number  of  years. 

By  Mr.  Rollins  : 

Question.  Will  you  tell  me  how  the  amount  of  your  trade  for  the  past  two 
years  has  compared  with  the  amount  of  trade  for  the  two  years  next  previous  ? 
Answer.  I  should  suppose  there  has  been  an  increase. 
Question.  How  much  has  it  increased  ? 
Answer.  I  have  never  looked  at  the  books  to  see. 


NEW  YORK  CUSTOM  HOUSE. 


91 


Question.  You  have  a  pretty  distinct  idea  in  your  own  mind  of  a  thing  which 
almost  every  merchant  has  of  his  own  business  > 

Answer.  I  should  make  a  haphazard  guess  if  I  gave  you  any  idea  of  it. 
You  may,  perhaps,  think  it  singular,  but  1  really  do  not  know,  for  1  never  con- 
sulted my  balance  sheet.  You  may  consider  it  carelessness  or  imprudence  on 
my  part,  but  I  really  do  not  know  what  my  commissions,  carried  to  my  credit 
on  the  31st  of  December,  for  the  past  year  have  been.  I  have  not  really  Looked 
at  it,  and  therefore  I  could  not  tell  you  what  the  increase  of  per-ccntage  is.  Our 
business  is  a  regular  business,  which  goes  on  like  clockwork. 

Question.  Has  not  your  business  very  largely  increased  since  the  breaking- 
out  of  this  rebellion  1 

Answer.  1  do  not  think  it  has  very  largely  increased.  I  think  it  has  in- 
creased, but  what  per-centagc  I  could  not  tell  you;  I  do  not  think  any  material 
per-centage.  I  should  not  suppose  that  it  has  increased  anything  like  fifty  per 
cent.  Our  business  is  not  a  large  one;  our  commissions  we  generally  calculate 
at  the  end  of  the  year  in  the  neighborhood  of  about  $10,000  each.  1  should 
not  suppose  that  each  of  us  got  $15,000  ;  there  are  two  of  us  in  the  concern  ; 
I  couldn't  tell  you  without  asking  my  bookkeeper. 

Question.  About  what  amount  of  merchandise  have  you  been  accustomed  in 
years  past  to  ship  to  the  Bermudas  1 

Answer.  These  are  statistics  that  I  really  cannot  tell  you  about,  except  in 
this  way  :  Our  commissions  are  generally  2h  per  cent.,  and  in  some  cases  5  per 
cent.,  and  our  income  perhaps  $20,000.  I  do  not  think  that  our  commissions 
for  the  past  year  have  been  $20,000;  estimating  our  commissions  partially  at  :ih 
per  cent.,  and  partially  at  5  per  cent.,  and  it  would  be  about  that.  1  could  give 
you  the  statistics  for  several  years  of  what  our  income  has  been,  if  you  desire 
it,  by  referring  to  the  books. 

By  Mr.  Le  Blond : 

Question.  There  was  one  bond  which  you  gave  amounting  to  $64,000  1 
Answer.  That  was  the  first  one  we  gave  for  which  we  have  no  consul's  certifi- 
cate. I  would  like  to  explain  how  that  thing  occurred.  We  always  considered 
it  a  very  hard  case  upon  us.  Before  we  shipped  that  cargo  I  went  to  Mr.  Em- 
bree,  and  said  to  him :  "  Mr.  Embree,  I  understand  there  has  been  3ome  talk  about 
bonding  for  shipment  abroad — to  Bermuda ;  you  are  aware  that  we  make  large 
shipments  to  Bermuda,  and  we  now  have  a  large  order  for  provision.-,  at  least 
a  large  cargo  we  are  shipping."  It  was  composed  of  three  or  four  orders  which 
we  had  at  that  time,  as  we  could  not  get  freight  in  the  vessels  in  which  they 
were  ordered.  I  said  to  him,  "  Shall  we  have  any  trouble  in  bonding  ?  if  so, 
I  shall  not  ship."  He  said,  "  You  have  been  in  this  business  so  long  that  1 
should  be  loth  to  take  a  bond  from  you  under  these  circumstances."  I  then 
said  to  him,  "I  understand  that  we  shall  not  be  required  to  give  any  bonds;" 
He  said,  "Yes,  so  far  as  he  was  concerned  that  we  should  not,  and  he  did  not 
think  they  would  be  required."  We  had  chartered  the  vessel,  taken  a  load, 
and  we  should  have  stopped  there,  but  for  his  leaving  us  to  understand  that  we 
should  not  have  to  give  a  bond.  When  we  came  to  clear  the  vessel,  it  turned 
out  that  we  were  to  bond.  I  thought  it  was  a  hard  case,  after  we  had  purchased 
the  vessel,  paid  for  the  goods,  to  be  told  that  we  had  to  bond.  I  remarked  to 
my  brother,  "This  really  looks  like  a  trap — we  seem  to  be  caught,"  because 
we  had  not  the  slightest  idea  of  doing  anything  wrong,  but  with  the  consent  of 
the  custom-house  we  had  gone  on  loading  this  vessel.  When  I  was  up  to  see 
Mr.  Embree  some  days  after  I  got  his  consent  to  ship  the  provisions,  as  1  con- 
strued it.  He  said  to  me,  "Do  you  own  such  a  vessel?"  I  said,  "  Yes.  that  is  the 
very  vessel  I  spoke  to  you  about  a  few  days  ago  ;  I  did  not  name  tin1  vessel  to 
you,  but  I  mentioned  the  fact  to  you  that  I  was  loading  a  vessel."  He  said 
that  it  had  been  reported  to  him  that  she  was  taking  a  large  lot  of  provisions. 
I  said,  "  Yes,"  and  1  repeated  that  I  conceived  that  we  had  been  badly  treated 


92 


NEW  YORK  CUSTOM  HOUSE. 


in  that  case,  and  wo  felt  unpleasant  about  it  ;  that  we  had  not  the  slightest  idea 
of  shipping  anything  for  the  benefit  of  the  confederacy.  But  we  were  in  that 
fix,  and  we  could  not  get  out  of  it.  We  then  asked  Mr.  Conklin  to  bond  for 
us,  and  he  it  was  that  suggested  that  bonds  had  been  cancelled  in  some  cases, 
and  he  thought  he  could  get  it  done  for  us;  we  did  not  think  nor  suggest  getting 
the  bonds  cancelled. 

Question.  Was  that  the  first  time  you  ever  heard  that  this  thing  could  be 
done  ] 

Answer.  Yes,  sir ;  we  did  not  know  when  we  gave  the  bonds  that  they  were 
to  be  cancelled  ;  we  did  not  know  that  they  were  until  the  thing  was  done. 
He  said  he  thought  he  could  get  them  cancelled  ;  I  suppose  that  was  one  word 
for  himself  and  two  for  us.  As  he  had  been  good  enough  to  bond  for  us,  and  we 
gave  him  nothing  for  the  first — which  was  some  time  ago,  not  at  that  time — 
and  in  consideration  of  his  having  done  it,  we  gave  him  $50. 

By  Mr.  Rollins  : 

Question.  Was  not  this  $64,000  shipment  an  unusually  large  one1? 
Answer.  Yes,  sir ;  but  I  explained  to  Mr.  Embree  at  the  time  how  we  ac- 
counted for  it. 

Question.  These  orders,  you  say,  were  from  your  regular  agents  or  corre- 
spondents ? 

Answer.  They  were  generally  from  our  old  correspondents ;  there  was  one 
new  correspondent,  M'hose  name  will  alarm  you.  A  large  portion  of  our  order 
came  from  Mr.  Bowen,  who  was  at  Bermuda,  and  who  was  considered  as  one  of 
the  confederate  agents,  but  the  order  came  to  us  in  a  regular,  straightforward 
manner.  There  was  nothing  said  about  secrecy  ;  it  was  simply  :  charter  me  a 
vessel;  send  me  so  many  barrels  of  salt  provisions,  and  added  to  this  were  these 
heavy  orders. 

Question.  Did  you  know  who  this  man  was  1 

Answer.  Certainly. 

Question.  Did  you  know  that  he  was  the  agent  of  the  confederate  govern- 
ment ? 

Answer.  We  knew  that  he  was  acting  in  that  capacity;  he  had  many  of 
these  vessels  consigned  to  him. 

Question.  Did  you  not  suppose,  when  you  shipped  the  goods  to  him,  that 
they  were  to  be  used  for  the  confederate  service  ? 

Answer.  I  had  not  the  slightest  idea  of  it,  except  that  they  might  be  used  as 
stores.  I  will  state  to  you  what  my  impressions  were  about  it.  I  supposed 
Mr.  Bowen  had  made  some  money  at  the  business,  (that  was  the  first  transac- 
tion we  had  with  him ; )  that  he  wished  to  invest  it  and  make  profit  out  of  it ; 
that  he  could  import  this  pork  at  a  low  price  to  Bermuda,  and  that  he  wished  to 
ship  it  to  the  West  Indies  in  smaller  lots,  thereby  realizing  his  exchange.  That 
was  my  belief  then,  and  is  my  belief  now.  He  had  not  the  slightest  intimation 
that  it  was  for  any  irregular  trade ;  and  we  do  not  know  to  this  day,  and  we 
have  no%reason  to  believe,  that  a  barrel  of  the  pork  was  ever  sent  to  the  south. 
Some  of  it  might  have  gone  as  stores  ;  whether  it  was  ever  shipped  south  or 
not  I  cannot  say.  We  have  reason  to  believe  so,  other  than  the  ordinary  possi- 
bility that  provisions  had  been  sent  then]  as  stores. 

Question.  Did  not  the  fact  that  he  was  the  agent  of  the  confederated  govern- 
ment, and  the  further  fact  that  he  was  ordering  goods  that  you  knew  the  con- 
federate government  were  in  pressing  need  of,  viz.,  provisions,  make  you  sus- 
pect that  he  wanted  them  for  the  confederate  government  1 

Answer.  I  cannot  say  that  I  did  suspect  anything  of  the  sort,  because  so 
much  pork  was  going  to  so  many  other  persons  besides  Bowen.  There  was  a 
lot  of  400  or  500  barrels  going  to  others. 

Question.  Was  he  an  old  customer  ? 

Answer.  He  was  an  old  correspondent. 


NEW  YORK  CUSTOM  HOUSE. 


93 


Question.  At  that  time  the  order  was  an  extraordinary  one  ? 
Answer.  It  was  a  large  order. 

Question.  One  would  naturally  suppose  that  you  must  have  had  some  sus- 
picion ? 

Answer.  I  will  tell  you  what  my  suspicions  were,  so  far  as  that  is  concerned. 
I  did  not  know  that  salted  provisions  were  wanted  south  materially.  I  suppose, 
if  they  wanted  them  in  that  way  at  all,  it  would  be  probably  for  stores  for  .ships. 

Question.  Have  you  been  to  Bermuda  since  that  time  ? 

Answer.  Yes,  sir. 

Question.  Do  you  know  what  disposition  was  made  of  these  goods  1 
Answer.  No,  sir  ;  of  not  a  single  barrel. 

Question.  Why  have  you  not  been  able  to  secure  the  consul's  certificate  in 
that  instance  ? 

Answer.  I  have  never  asked  for  it. 
Question.  Why? 

Answer.  I  cannot  tell  you  the  reason. 

Question.  Why  have  you  secured  the  consul's  certificate  in  other  cases,  and 
not  in  this  case  ? 

Answer.  The  reason  is  that  we  did  not  send  for  it.  We  considered  the  matter 
settled. 

Question.  If  you  considered  the  shipment  a  proper  and  legitimate  transaction, 
why  did  you  pay  $600  for  the  bond  ? 

Answer.  As  I  told  you,  in  the  outset  of  the  thing  we  anticipated  some  diffi- 
culty in  getting  these  bonds,  and  in  a  short  time  it  appeared  to  us  that  there 
would  be  difficulty.  We  had  no  authority  to  give  bonds  for  Mr.  Beuen.  We 
had  to  write  to  all  these  various  shippers. 

Question.  Were  you  not  apprehensive  that  the  goods  would  give  aid  and 
comfort  to  the  rebels,  and  therefore  the  bonds  would  be  forfeited  ? 

Answer.  He  did  not  contemplate  that  there  would  be  any  export  of  them  to  the 
southern  confederacy.  He  thought  that  possibly  they  might  go  as  stores  on  board 
ships.  I  said  to  Mr.  Embree  in  regard  to  cordage,  such  as  we  were  in  the  habit  of 
shipping  constantly  to  the  same  men,  "  now  this  bond  says  this  must  be  con- 
sumed in  Bermuda ;  what  am  I  to  understand  by  that,  if  this  cordage  is  sold,  a 
coil  or  few  coils  of  it  on  board  vessels  for  use  in  Bermuda? "  He  said,  this  must 
be  considered  as  consumption.  I  supposed,  in  regard  to  the  pork,  that  it  either 
would  be  shipped  to  the  West  Indies  in  lots  of  three  or  four  barrels,  or  furnished 
to  the  steamships  that  came  out  there  as  stores.  We  did  not  consider  that  it 
would  be  shipped  to  the  southern  confederacy,  but  that  it  would  be  consumed 
by  these  different  ships. 

Question.  How  soon  after  this  shipment  did  you  visit  Bermuda? 

Answer.  I  visited  there  last  October. 

Question.  Did  you  make  any  inquiries  relative  to  the  disposition  of  this 
property  ? 

Answer.  No,  sir. 

By  Mr.  Le  Blond  : 

Question.  You  say  that  you  have  a  consul's  certificate  as  to  the  principal 
part  of  these  shipments,  but  you  have  not  as  to  this  large  amount  of  $64,000. 
How  does  it  happen  that  you  procured  the  consul's  certificate  of  a  portion  of 
similar  shipments,  and  not  of  this  one  1 

Answer.  I  thought  that  matter  was  at  rest,  and  it  was  done  hurriedly — I 
think  I  might  say  thoughtlessly. 

Question.  Have  you  got  a  custom-house  broker  in  your  employ  ? 

Answer.  We  employ  custom-house  brokers — one  particular  house. 

Question.  What  is  his  name  1 

Answer.  Wood,  Never  &  Co. 

Question.  Have  they  procured  any  of  these  bonds  from  the  custom-house  ? 


N  E W  YORK  CUSTOM  HOUSE. 


Answer.  Xo,  sir. 

Question.  Have  you  had  any  other  bonds  taken  from  the  custom-house  in 
the  manner  that  those  six  or  seven  were  ? 

Answer.  No,  sir  ;  those  are  the  only  ones.  As  soon  as  this  transaction  was 
done  we  regretted  it.  It  was  done  in  a  flurry.  We  had  a  vessel  on  our  hands, 
chartered,  and  we  had  a  large  amount  of  goods  to  ship,  and  it  was  done  thought- 
lessly. The  next  day,  probably,  I  should  not  have  done  it,  and  should  have 
gone  to  the  expense  of  discharging  the  cargo.  Therefore,  we  said,  we  shall 
now  require  the  consul's  certificate  for  everything  we  ship,  and  have  done  so 
from  that  time. 

Question.  What  was  the  amount  you  paid  to  Mr.  Conklin  ? 

Answer.  I  think  we  paid  him  500  or  600  dollars  to  get  that  bond  cancelled. 

Question.  1  would  like  to  know  the  exact  amount  of  the  presents  you  gave 
to  Mr.  Conklin — what  they  would  amount  to  in  the  aggregate,  including  the 
amount  of  money  you  gave  t<>  Mr.  Conklin? 

Answer.  I  think  the  whole  we  have  paid  Mr.  Conklin  was  about  500  or  600 
dollars  for  himself. 

Question.  How  much  for  his  expenses? 

Answer.  About  1,300  or  1,400  dollars. 

Question.  Did  you  give  to  him  any  presents,  in  addition  to  the  amounts  you 
have  here  stated  ? 
Answer.  No,  sir. 

By  Mr.  Rollins  : 

Question.  Have  you  any  doubt  about  the  fact  that  these  provisions  which 
were  sent  to  the  confederate  agent  were  reshipped  and  used  for  the  benefit  of 
the  confederate  service  ? 

Answer.  I  did  not  suppose  at  that  time,  and  do  not  suppose  now,  as  far  as 
my  candid  belief  goes,  that  these  goods  were  shipped  to  the  southern  confed- 
eracy. I  have  no  reason  to  believe  so.  I  thought  they  might  be  used  as  stores 
for  the  various  ships  coming  into  Bermuda. 

By  the  chairman  : 

Question.  I  will  ask  you  whether  any  other  parties,  to  your  knowledge,  in 
this  city,  have  obtained  the  cancellation  of  other  bonds  in  this  irregular  manner  ? 

Answer.  I  have  never  heard  of  it  myself.  I  have  heard  Mr.  Conklin  say 
that  it  has  been  so.  I  never  heard  myself,  here,  of  an  individual  that  has  done  it. 
The  only  thing  upon  this  point  I  have  heard  is,  while  I  was  in  Bermuda  it  was 
passing  about  that  a  Mr.  Woolff  had  paid  so  much  money  in  Xew  York  to  get 
his  bonds  cancelled.    I  happened  to  be  a  passenger  to  Bermuda  with  Mr.  Woolff. 

Testimony  of  B.  F.  Mudgett. 

Xew  York,  March  4,  1864. 

B.  F.  Mudgett  sworn  and  examined. 
By  the  chairman  : 

Question.  In  what  capacity  are  you  connected  with  the  Xew  York  custom- 
house ? 

Answer.  As  deputy  collector. 

Question.  How  long  have  you  held  that  position  ? 

Answer.  I  commenced  my  duties  the  1st  of  September,  1S62. 

Question.  What  branch  of  business  comes  under  that  bureau  1 

Answer.  It  is  the  5th  division  of  the  custom  house,  and  has  charge  of  the 
entry  of  merchandise  and  the  granting  of  free  permits,  if  there  are  any  to  be 
granted,  and  of  all  questions  relating  to  the  acceptance  of  invoices,  and  the  reg- 
ularity of  the  entries  of  goods,  aud  also  of  the  assessment  of  duties  under  the  tariff. 


NEW  YORK  CUSTOM  HOUSE. 


95 


Question.  Please  tell  us  with  reference  to  the  mode  of  entering  goods,  whether 
there  might  be  any  corrections  made  for  the  benefit  of  the  government  or  for  the 
benefit  of  the  merchants  of  this  city. 

Answer.  I  can  give  you  the  exact  mode  in  which  goods  are  entered  for  duties. 
The  merchant,  when  his  goods  arrive,  (he  frequently  receives  his  invoice  and 
bill  of  lading  by  mail  before  the  vessel  arrives,)  makes  up  an  entry  of  the  goods 
according  to  a  prescribed  form,  by  such  a  person,  by  such  a  vessel,  and  such  a 
master,  from  such  a  place,  &c;  heads  it  in  that  way;  then  states  the  number  and 
contents  of  the  packages;  makes  out  the  rate  of  duties,  and  then  presents  it  with 
his  invoice  to  the  entry  clerk.    He  must  present  his  invoice  just  as  he  receives 
it :  is  not  allowed  to  make  a  single  mark  or  scratch  upon  it,  for  if  he  was  allowed 
to  tamper  with  it  in  any  way  the  government  would  not  be  safe.    He  goes  to 
one  of  the  entry  clerks  in  the  rotundo,  of  which  there  are  eight,  presents  the 
invoice  and  the  papers.    The  entry  clerk  looks  them  over  to  see  if  his  entry  is 
correct  ;  looks  at  the  rate  of  duties  to  see  if  that  is  correct,  and  if  it  is  not,  he 
makes  him  correct  it.    The  entry  clerk  checks  all  the  papers,  and  then  they  are 
brought  to  the  deputy  collector.    Generally,  if  there  be  any  question  of  irregu- 
larity raised  about  them,  they  have  to  come  to  me.    If  there  is  any  remedy  by 
which  the  merchant  can  be  relieved,  and  which  the  law  will  permit,  in  order  to 
facilitate  the   business,  I  allow  him  to  give  a  bond  that  he  will  produce 
the  proper  papers  that  are  wanting.    For  instance,  the  invoice  may  want 
the  certificate  of  the  consul  abroad.    In  that  case,  I  would  allow  the  party  to 
give  bonds  to  produce  it  at  the  proper  time.    If  there  is  no  difficulty  about  the 
invoice,  the  party  goes  to  any  deputy  collector  and  swears  to  it.    We  order  one 
out  of  every  ten  packages  generally,  where  the  goods  are  light  and  all  alike, 
such  as  dry  goods  and  all  that  class,  to  the  appraisers'  stores,  where  they  are 
examined;  and  if  they  find  them  all  correct,  according  to  the  invoice,  with  no  evi- 
dence of  fraud  about  them,  then  they  are  returned  to  the  amendment  clerks  with 
their  report  upon  them.    The  appraisers  state  what  the  duty  should  be,  and  the 
invoice  is  sent  to  me.    If  there  has  been  any  error,  we  give  them  notice  that 
their  invoice  has  been  raised,  and  then  they  have  24  hours  to  call  for  a  re- 
appraisement  by  merchant  appraisers;  and  then,  if  the  merchant  appraisers 
sustain  the  government  appraisers,  and  if  the  error  is  over  10  per  cent,  and  not 
over  25  per  cent.,  the  law  compels  the  parties  to  pay  the  penalty  for  their  under- 
valuation.   If  the  error  is  over  25  per  cent.,  the  goods,  by  the  law,  are  forfeited, 
and  they  are  then  seized.    In  cases  where  it  is  over  10  per  cent,  or  over  25  per 
cent.,  the  report  is  returned  to  me,  and  I  send  it  in  to  Mr.  Hanscom,  who  is  the 
officer  that  has  charge  of  seizures  and  the  collecting  of  penalties,  &c.    I  have 
nothing  to  .do  with  that  matter  in  any  way.    After  the  matter  has  passed 
through  this  preliminary  proceeding,  I  have  nothing  further  to  do  with  it  if 
there  is  any  relief  granted  to  the  merchants  or  any  penalties  exacted.    I  should 
have  stated  that  after  these  invoices  pass  through  our  hands  they  go  into  the 
naval  office  before  they  go  to  the  appraisers,  and  if  they  find  any  irregularity 
in  the  papers  they  send  them  back  to  us  with  a  statement  of  the  irregularity. 
If  they  do  not  find  anything  wrong  in  them,  they  pass  them  along  to  the  ap- 
praisers, as  I  have  named.    I  do  not  know  of  any  more  simple  method  than  we 
have  now  in  these  particulars,  although  I  think  myself  that  requiring  a  triplicate 
invoice  might  be  dispensed  with.    The  merchant  abroad,  when  he  sells  the 
goods  to  come  here,  has  to  go  before  the  American  consul  and  make  oath  that 
the  invoice  is  a  true  and  correct  one,  and  he  sends  that  invoice  to  his  correspond- 
ent here.    He  has  to  leave  a  copy  of  it  with  the  consul,  and  then  the  consul 
has  to  send  another  copy  to  the  collector.    When  the  merchant  enters  the  goods 
here,  if  this  triple  invoice  has  not  been  received  by  the  collector,  he  is  required 
to  give  a  bond  to  produce  the  triplicate,  through  the  consul.    This  system  is 
evidently  intended  to  protect  the  government  against  fraud,  but  it  creates  a 
great  deal  of  annoyance  to  the  merchants.    I  am  inclined  to  think  that  a  man 


9G 


NEW  YOKK   CUSTOM  HOUSE. 


who  has  made  up  his  mind  to  commit  a  fraud  would  go  before  a  consul  and 
swear  just  as  quick,  to  three  as  he  would  to  one. 

Question.  There  has  been  something  said  here  about  three  and  five  per  cent., 
and  some  of  the  merchants  claim  that  they  have  followed  the  usage  of  paying 
duties  on  three  per  cent,  commission  on  purchases  abroad,  whereas  it  should  have 
been  five  per  cent.    Will  you  please  state  how  that  is. 

Answer.  The  law  requires  the  merchant  in  entering  his  goods  to  put  in  the 
charges  all  the  commissions  that  are  made  previous  to  the  shipment  of  the  goods. 
There  are  different  usages  prevailing  abroad  with  regard  to  this  matter  of  com- 
missions. The  commission  for  buying  dry  goods  in  England  is  l.J  per  cent. 
If  that  commission  is  not  put  in,  the  entry  clerk  puts  it  in.  If  the  merchant 
puts  in  his  entry  that  there  was  no  commission,  we  write  under  the  stamp  to  the 
appraisers  to  report  if  there  should  be  commissions,  and  then  the  appraisers  re- 
port, and  we  are  bound  by  their  report  entirely.  On  crockery  ware,  purchased 
in  England,  there  has  been  invariably,  and  on  hardware  sometimes,  a  commission 
of  one  per  cent.,  and  unless  they  put  it  in,  we  generally  put  it  in  2h  per  cent. 
Commissions  are  generally  five  per  cent.,  but  in  France  the  commissions  are 
different,  being  2.J  per  cent,  on  dry  goods. 

By  Mr.  LeBlond : 

Question.  Then  the  system  really  is,  that  whatever  commission  the  merchant 
pays,  no  matter  in  what  country  he  buys  the  goods,  that  commission  and  the 
other  incidental  expenses  attached  to  the  shipping  of  goods  are  to  be  added  to 
the  amount  upon  which  they  are  to  pay  duties. 

Answer.  Yes,  sir,  except  the  expense  of  carrying  from  inland  towns  to  place 
of  shipment,  as  from  Birmingham,  say,  to  Liverpool — internal  transportation. 
That  used  to  be  charged,  but  Secretary  Chase  has  decided  that  that  is  not  a 
proper  charge,  and  we  have  consequently  omitted  it.  It  has  been  always  charged 
heretofore  for  the  last  twenty-five  years. 

Question.  Do  you  have  anything  to  do  in  your  department  with  the  delivering 
of  goods  to  the  merchants  after  the  receipt  of  them  here  in  the  custom-house  1 

Answer.  Yes,  sir ;  I  have  it  all  to  do  myself.  The  invoices,  after  they  are 
examined  by  the  appraisers,  come  over  to  the  amendment  desk,  which  is  under 
my  supervision.  There  is  frequently  an  additional  duty,  when  they  come  to  be 
amended,  to  be  collected,  more  than  they  have  paid,  sometimes  $500  on  an  en- 
try, and  sometimes  on  $2,500.  After  our  amendment  clerks  have  made  it  up 
they  go  into  the  naval  office,  are  checked  there,  and  then  they  go  to  the  cashier, 
and  are  delivered  upon  the  payment  of  the  additional  duties.  But  in  the  exer- 
cise of  my  discretion,  I  give  special  deliveries  to  firms  that  I  know  to  be  first- 
class  responsible  houses,  such  as  A.  T.  Stewart,  Claflin  &  Mellen,  and  that  class 
of  merchants,  and  very  frequently  I  give  special  deliveries  to  smaller  dealers 
that  I  know  pretty  well,  if  there  are  not  more  than  twenty-five  or  thirty  dollars 
due,  and  say  to  them,  I  will  trust  you  until  you  get  the  matter  arranged.  I  do 
so  in  order  to  accommodate  these  men  all  I  can. 

Question.  Are  there  other  cases  in  your  department  where  men,  other  than 
those  to  which  you  have  just  alluded,  are  accommodated  out  of  the  order  in 
which  they  present  their  claims  ? 

Answer.  None  that  I  know  of,  except  as  I  have  told  you.  Nobody  has  any 
right  to  accommodate  any  one  but  myself  in  these  particulars. 

Question.  Do  you  know  of  any  money  having  been  paid  to  any  of  the  sub- 
ordinates in  either  your  department,  or  in  any  other  department  of  the  custom- 
house, for  any  special  attention  to  a  certain  class  of  men  in  doing  their  business  ? 

Answer.  I  do  not ;  I  have  heard  such  charges  made  against  the  entry  clerks 
of  pressing  one  man's  entry  before  his  turn,  and  I  made  a  special  order  two  or 
three  months  ago  requiring  and  making  a  new  system  particularly,  so  as  to  avoid 
everything  of  that  kind.    These  charges  have  been  made,  and  1  want  to  say 


NEW  YORK  CUSTOM  HOUSE. 


97 


frankly  that  I  think  there  has  been  a  great  deal  of  truth  in  them,  and  I  have 
done  all  in  my  power  to  find  out  the  truth  in  the  matter,  and  put  a  stop  to  the 
practice.  I  have  no  proof  that  such  practice  exists,  but  merely  my  suspicion. 
I  have  noticed  the  fact  that  some  clerks  will  get  a  great  deal  more  than  others 
to  do.  It  is  true,  that  some  clerks  are  smarter  than  others,  do  business  faster 
are  more  popular  with  the  merchants,  and  consequently  get  more  to  do  ;  but  I 
take  it  for  granted,  judging  from  my  view  of  human  nature,  that  a  clerk  would 
not  stay  and  work  until  7  and  8  o'clock,  and  carry  an  armfull  of  papers  home 
with  him,  unless  he  was  getting  extra  compensation ;  but  they  all  deny  it 
plumply  to  me,  and  I  have  devised  every  means  I  could  think  of  to  find  out  tin- 
real  state  of  the  case;  and  I  have  suggested  to  the  agents  of  the  Treasury 
Department,  who  have  been  investigating  into  these  matter,  certain  question-  I 
be  put  to  them,  and  I  believe  one  clerk  did  disclose  something  which  led  to  his 
removal. 

Question.  Give  us  the  name  of  one  or  more  of  your  clerks  about  whom  y  i 
had  any  suspicions. 

Answer.  I  think  now  that  the  practice  is  entirejy  done  away  with,  if  it  has 
ever  existed.  I  made  an  arrangement  which  I  thought  would  put  an  end  to  any 
such  practice,  and  it  was  this:  I  directed  every  man  who  goes  to  the  entry 
clerk's  desk  to  bring  his  entries  with  him,  hold  them  in  his  hand,  and  only  hand 
one  to  the  clerk  at  a  time,  and  as  soon  as  that  was  finished  to  hand  him  another, 
each  man  taking  his  turn;  continue  that  until  2  o'clock,  and  then  that  all  who 
could  not  get  their  entries  through  by  that  time  should  leave  them  at  the  desk 
of  the  chief  clerk,  to  be  ready  for  every  man  at  10  o'clock  the  next  morning,  s< 
that  no  man  should  be  under  the  necessity  of  paying  anything  to  get  his  work 
done,  and  so  that  the  clerk  could  not  take  one  man's  entry,  lay  it  aside,  and  do 
another  man's  work.  I  thought  that  such  a  plan  would  effectually  check  the 
practice  I  have  spoken  of  if  it  did  exist.  Merchants  have  thanked  me  for  the 
improvement  made  in  this  respect,  and  have  acknowledged  that  the  present  sys- 
tem was  a  great  aid  in  facilitating  business.  Mr.  Hillyer,  a  very  active  g<  ntl  - 
man,  takes  up  these  entries,  passes  among  the  clerks,  and  distributes  them  among 
them,  and  every  one  who  takes  the  entries  must  have  them  finished  by  10  o'clock 
in  the  morning  if  he  has  to  work  all  night. 

By  the  chairman : 
Question.  How  long  has  this  practice  been  in  operation  ? 
Answer.  About  three  months. 
Question.  What  led  you  to  adopt  this  practice? 

Answer.  These  reports  about  the  clerks  being  paid ;  that  some  merchant- 
could  not  get  their  entries  through  in  a  reasonable  time.  I  used  to  watch  the 
clerks,  and  I  became  convinced  that  some  other  method  must  be  adopted. 

Question.  Did  yon  find  any  case  where  any  of  the  clerks  had  granted  such 
favors  as  you  speak  of? 

Answer.  I  know  that  this  matter  underwent  an  investigation  by  Mr.  Barnev. 

Question.  How  long  ago  ? 

Answer.  Since  he  has  been  here.    One  of  the  entry  clerks  was  removed 
this,  and  I  understand  that  he  was  removed  because  he  acknowledged  having 
received  some  pay  from  some  of  the  merchants. 

Question.  What  time  do  you  say  you  became  connected  with  the  office  I 

Answer.  The  1st  of  September,  1862,  when  Mr.  Holl'man  died;  Mr.  Barney 
asked  me  to  come  in  and  take  his  place. 

Question.  This  practice  probably  prevailed  then? 

Answer.  My  own  opinion  is,  that  the  practice  has  been  carried  on  for 
years  continuously  from  all  that  I  can  learn  from  the  old  brokers  about  the 
custom-house.    In  former  times  they  used  to  consider  it  as  a  matter  of  fact  rliat 
every  entry  clerk  was  to  receive  something  in  this  way,  and  that  it  was  a  legiti- 
II.  Rep.  Com.  Ill  7 


98 


NEW  YORK  CUSTOM  HOUSE. 


mate  transaction.  Mr.  Barney  told  me  when  I  came  into  the  office  that  such  a 
charge  h  id  been  made  against  these  entry  clerks,  and  he  wanted  me  to  try  and 
Bee  it  there  was  any  way  to  stop  it,  and  it  has  been  my  endeavor  ever  since  to 
do  so. 

Question.  You  do  not  believe  that  the  practice  obtains  now] 
Answer.  No,  sir. 

Question.  Might  it  not  obtain  without  your  knowledge  in  the  way  of  presents 
given  to  them  outside? 

Answer.  I  jndge  not,  for  the  reason  that  the  parties  who  give  these  things 
must  have  an  object.  Men  will  not  give  their  money  when  nothing  is  to  be 
accomplished  by  it. 

Question.  Do  you  say  positively,  that  under  the  system  as  now  administered, 
every  man's  invoice  that  is  not  ready  for  him  for  want  of  time  or  pressure 
of  business  by  2  o'clock,  is  ready  for  him  at  10  o'clock  the  next  day  invariably  ? 

Answer.  Yes,  sir ;  I  have  not  heard  of  an  instance  where  there  has  been  a 
failure. 

Question.  Somebody  has. stated  here  that  there  have  been  days  of  delay. 
Answer.  It  is  not  so. 

Question.  Could  such  a  practice  as  that  to  which  you  have  alluded  exist  with- 
out your  knowledge  ? 

Answer.  I  cannot  say  that.  I  have  got  these  notices  put  up  all  over  the  build- 
ing, and  I  think  there  is  one  on  every  man's  desk  ;  I  put  them  up  at  the  time 
the  order  was  made. 

Question.  When  was  the  order  made? 

Answer.  Three  months  ago. 

Question.  Before  or  since  the  appointment  of  this  committee  ? 
Answer.  Before ;  I  think  it  went  into  effect  on  the  1st  of  January. 

By  Mr.  Le  Blond. 

Question.  Have  you  heard  of  any  complaints  by  the  merchants  since  the 
adoption  of  this  new  regulation  ? 

Answer.  No,  sir  ;  there  have  been  no  complaints  made  to  me.  I  have  had  a 
notice  of  the  order  placed  conspicuously  all  over  the  rotundo,  so  that  every  mer- 
chant might  be  informed  of  it.  There  has  been  some  delay  in  the  despatch  of 
business  at  the  amendment  desk,  and  I  am  trying  to  devise  some  method  to  fa- 
cilitate business  there.  After  the  invoices  have  been  to  the  appraisers  and  come 
back,  the  amendment  clerks  have  to  examine  every  article,  Sometimes  there 
will  be  twenty-five  different  rates  of  duty  on  an  entry,  and  it  is  quite  a  difficult 
task  to  regulate  the  matter.  That  is  why  I  give  those  special  deliveries,  because 
there  must  necessarily  be  some  delay  there  ;  and  then  the  naval  officer  goes  over 
the  whole  thing,  and  his  force  is  not  large  enough,  so  that  the  merchants  are 
continually  grumbling.  They  say,  if  you  let  the  invoice  go  into  the  naval  office 
it  will  be  a  week  before  we  will  get  our  goods,  and  therefore  they  ask  for  a  special 
delivery.  Mr.  Denison  resisted  my  giving  special  deliveries  very  strenuously, 
but  it  is  certain  that  it  would  be  prejudicial  to  the  business  interests  of  this  city 
not  to  grant  them. 

Question.  Do  you  not  think  that  it  creates  dissatisfaction  among  the  merchants 
when  they  find  one  class  receiving  these  special  favors  while  another  class  does 
not  receive  them  ? 

Answer.  That  objection  I  know  can  be  urged  against  it.  Where  there  is  any 
considerable  amount  of  extra  duties,  say  one  hundred  or  two  hundred  dollars,  I 
certainly  would  not  take  the  responsibility  of  delivering  the  goods  unless  I  knew 
the  merchant  to  be  a  perfectly  responsible  man.  It  is  just  as  it  is  in  a  business 
-  community  ;  a  man  who  is  known  to  be  responsible  can  do  business  to  a  better 
advantage  than  a  man  who  is  not  known  to  be  responsible.  Such  inequalities 
must  exist,  and  all  a  public  officer  can  do  is  to  recognize  that  principle  to  a  cer- 


NEW  YORK  CUSTOM  HOUSE 


9(J 


tain  extent.  If  lie  makes  such  distinction  among  men  of  equal  responsibility,  it 
would  be  a  gross  outrage.  ' 

Question.  Such  a  system  carried  out  in  the  way  you  Bpeak  of,  if  the  man  oc- 
cupying the  position  you  do  were  not  strictly  honest,  might  give  rise  to  a  great 
deal  of  trouble  ? 

Answer.  That  is  so,  I  admit;  I  have  to  do  this  on  my  personal  responsibility. 
There  are  a  thousand  other  things  that  a  man  in  such  a  position  has  to  do,  and 
if  he  does  them  improperly  he  must  answer  before  a  wronged  public  and  all 
honest  men. 

March  3,  1S64. 

Alfred  T.  Conklin  sworn  and  examined,  (commission  merchant,  No.  42, 
New  street.) 

By  the  chairman  : 
Question.  How  long  have  you  been  a  commission  merchant? 
Answer.  About  12  years. 

Question.  Are  you  engaged  in  importations  and  exportations  ? 

Answer.  I  receive  flour  from  the  west ;  ship  goods  to  the  West  Indies  and  the 
British  provinces;  also  receive  goods  from  England ;  not  a  great  many,  however. 

Answer.  You  say  that  you  have  shipped  to  the  West  Indies  somewhat.  We 
understand  that  there  have  been  some  new  treasury  regulations  since  the  rebellion 
commenced,  differing  from  what  formerly  prevailed,  and  especially  requiring 
bonds  that  were  not  formerly  given ;  has  your  business  required  you  to  give  any 
such  bonds  ? 

Answer.  I  have  not  shipped  any  goods  myself  that  required  me  to  ^ive  any 
such  bonds,  but  I  have  become  bondsman  for  other  parties  who  shipped. 

Question.  Have  you  done  very  much  business  of  that  kind  ? 

Answer.  I  have  only  been  bondsman  for  one  linn,  witli  the  exception  of 
one  other  instance.  I  was  bondsman  for  Middleton  &  Co.,  and  in  one  instance 
for  Wm.  M.  Smith.  I  think  the  bonds  in  that  case  were  $600  and  $1,500.  I 
have  been  on  the  bonds  of  Middleton  &  Co.  for  80,000  or  90,000  dollars  on 
different  shipments,  from  900  dollars  probably  up  to  JO, 000  dollars  on  different 
vessels,  from  a  period  commencing  last  June. 

Question.  The  committee  have  taken  some  testimony  in  reference  to  the 
nature  of  these  bonds  and  the  parties.  I  want  to  ask  you  whether  the  bonds 
that  you  have  signed  have  all  or  any  of  them  been  cancelled  or  surrendered 
afterwards  ? 

Answer.  Some  six  or  seven  have  been  surrendered. 

Question.  The  committee  wish  a  full  history  of  this  transaction  just  as  it  took 
place. 

Answer.  It  occurred  in  tbis  way :  It  was  the  general  talk  here  that  these 
bonds  could  be  bought  up.  I  was  passing  through  the  custom-house  one  day 
on  business,  and  I  asked  one  of  the  brokers,  by  mere  chance,  if  such  things  could 
be  done.  He  said  he  thought  it  could  be.  I  asked  him  if  he  ever  knew  it  to  be 
done;  he  said  he  had.  The  broker's  name  was  Henry  Smith;  I  think  he  resides 
in  Jersey  City.  He  is  a  broker  in  the  custom-house.  I  told  him  that  I  was  on 
some  bonds,  and  if  that  was  the  case  I  would  like  to  buy  them  up,  and  I  told 
him  to  see  how  it  was.  He  reported  what  he  had  done,  and  the  result  of  it  was 
that  we  bought  up  six  or  seven  bonds. 

Question.  What  was  the  price  paid? 

Answer.  The  whole  amount  was  about  81,600  that  I  paid  for  the  bonds. 
Question.  That  is  the  amount  you  paid  Mr.  Smith  ] 
Answer.  YTes,  sir. 

Question.  What  he  paid  you  don't  know? 


100 


NEW  YORK  CUSTOM  HOUSE. 


Answer.  I  don't  know  anything  about  that. 
Question.  Who  furnished  yon  with  the  money  ! 

Answer.  That  money  was  paid  to  me  afterwards  by  Middleton  &  Co. 
Question.  All  of  it] 
Answer.  Yes,  sir. 

Question.  Is  there  anything  additional  to  the  testimony  thai  you  have  already 
given  that  occurs  to  you  that  you  could  communicate  to  the  committee  I 

Answer.  Nothing  in  regard  to  these  bonds  excepting  this — that  these  goods, 
although  they  were  bonded  and  shipped  to  the  West  Indies,  all  went  in  good 
faith.  It  was  not  for  the  blockade  business  at  all,  and  that  firm  has  now  lodged 
in  the  custom-house  the  certificates  to  cancel  these  bonds  given  by  the  American 
consul,  which  are  now  in  the  hands  of  Mr.  Hanscom.  They  are  getting  from 
each  individual  certificates  to  cancel  these  bonds.  There  is  one  thing  that  the 
custom-house  authorities  do  not  seem  to  understand  :  all  that  illicit  trade  which 
has  been  carried  on  between  this  city  and  Bermuda  has  been  carried  on  by  out- 
side parties,  not  by  the  regular  parties  in  the  trade.  The  old  established  houses, 
such  as  Middleton  &  Co.,  Wm.  Smith,  McCell,  Swift  &  Tucker,  and  Lightbon 
&  Luff,  have  had  a  continuous  trade  for  years  in  the  filling  of  a  great  many 
different  orders, fsome  of  them  quite  small,  from  various  part  of  the  West  Indies, 
and  you  will  see  from  the  clearances  at  the  custom-house  that  everything  has 
been  going  on  in  the  same  order  for  years.  Middleton  &  Co.  have  been  in  that 
trade  since  1832. 

New  York,  April  8,  1864. 

Alfred  T.  Conklin  recalled. 
By  the  chairman : 

Question.  How  long  prior  to  the  execution  of  the  $64,000  bond,  or  the  justi- 
fication of  it,  was  it  when  the  negotiation  about  the  surrender  of  it  took  place 
between  you  and  Smith  ? 

Answer.  Within  ten  minutes  before  the  bond  was  executed  the  arrangement 
was  consummated  that  I  was  to  pay  $600  for  the  surrender  of  the  bond ;  that  I 
was  not  to  be  sworn  that  I  was  worth  $64,000 — in  fact,  that  I  was  not  to  be 
sworn  at  all.  That  was  the  understanding  before  I  went  in  there,  that  I  was 
not  to  be  sworn. 

Question.  Was  Mr.  Middleton  with  you  at  the  time? 

Answer.  Mr.  Middleton,  the  principal  of  the  bond,  was  getting  his  papers 
through  while  the  negotiation  between  Mr.  Smith  and  myself  took  place  in  the 
rot  undo. 

Question.  Did  Mr.  Middleton  join  you? 

Answer.  We  went  in  together  into  Mr.  Stanton's  room. 

Question.  What  became  of  Smith  i 

Answer.  Smith  remained  in  the  rotundo.  He  had  negotiated  for  the  purchase 
of  the  bond,  and  had  nothing  further  to  do  with  the  matter,  having  been  simply 
employed  to  negotiate  the  surrender  of  the  bonds  and  arrange  the  terms  thereof. 
There  are  two  rooms — one  of  them  is  Stanton's  private  room,  and  the  other  is 
where  the  clerks  are.  We  had  to  go  in  there  and  wait  until  his  clerk  made  out 
the  bond. 

Question.  Was  the  bond  made  out  in  the  first  room  ? 
Answer.  Yes,  sir. 

Question.  Do  you  remember  who  spoke  to  the  young  man  about  making  out  the 
bond? 

Answer.  Mr.  Middleton. 

Question.  Who  was  the  bond  given  to  when  it  was  made  out  ? 
Answer.  It  was  taken  by  Mr.  Middleton,  and  he  and  I  went  into  Stanton's 
room. 


NEW  YORK  CUSTOM  HOUSE. 


101 


Question.  Do  you  recollect  whether  there  was  anybody  in  Mr.  Stanton's 
room  besides  Mr.  Middleton,  yourself,  and  Mr.  Stanton  I 

Answer.  There  was  not.  In  the  first  room,  1  think,  there  were  three  or  four 
clerks — two  young  men  and  an  elderly  gentleman. 

Question.  Did  you  ever  see,  or  were  you  ever  made  acquainted  with,  young 
Cady  Stanton  '. 

Answer.  Never  saw  him  to  know  him.  I  did  not  know  that  Henry  13. 
Stanton  had  a  son  until  after  this  affair  of  the  bonds. 

Question.  Was  there  any  circumstance  that  called  your  attention  to  the  clerk 
making  out  the  bond  at  that  time  by  which  you  could  give  a  personal  description 
of  him? 

Answer.  I  think  he  is  in  the  office  now.  I  think  the  last  time  I  was  in  the 
office  1  saw  him  making  out  the  bonds.  I  think  he  is  a  small-featured  man, 
with  gray  eyes,  and  a  little  freckled  in  the  face,  light  complexioned. 

Question.  You  think  there  were  two  young  men  and  an  elderly  gentleman 
there  ? 

Answer.  Yes,  sir. 

Question.  Do  you  recollect  the  personal  appearance  of  the  other  young  man  ? 
Answer.  A  good-looking  young  man,  with  dark  hair  and  eyes. 
Question.  Should  you  know  him  if  you  should  see  him? 
Answer.  I  think  I  would. 

Question.  Did  Mr.  Middleton  see  Smith  at  all  to  your  knowledge? 
Answer.  He  might  have  seen  him,  and  he  might  not. 

Question.  How  long  a  time  intervened,  in  your  opinion,  betwixt  Mr.  Smith's 
saying  to  you  that  things  were  arranged  and  your  entering,  with  Mr.  Middleton, 
Stanton's  office  ? 

Answer.  Mr.  Middleton,  previously  to  the  bond  being  given,  asked  me  if  I 
would  have  any  objections  to  going  on  a  bond  with  him.  I  told  him  no.  He 
stated  that  they  had  got  into  difficulty  with  the  custom-house,  and  that  was  the 
first  occasion  that  a  bond  had  been  required  of  them.  I  told  him  that  1  had  no 
objections  to  going  on  the  bond  at  all.  So  the  next  day,  or  the  day  after,  I 
think — I  will  not  be  certain  which — I  went  up  to  the  custom-house  with  him  to 
give  this  bond,  and,  as  I  said  that  I  had  negotiated  with  Smith  in  reference  to 
it,  I  will  state  how  it  took  place:  I  happened  to  be  passing  along  through  the 
custom-house  within  a  few  days  of  the  time  that  this  bond  was  given,  and  having 
heard  about  the  getting  up  of  bonds,  I  asked  Smith  about  it.  He  said  he  thought 
it  could  be  done,  and  wanted  to  know  why.  I  told  him  I  understood  these 
things  were  done,  and  if  other  people  are  doing  it  I  did'nt  know  why  we  should 
not  do  it.  He  afterwards  told  me  that  it  could  be  done.  AY  hen  I  agreed  to  go 
on  this  bond  of  Middleton  I  did  not  know  that  the  bond  was  for  so  large  an 
amount,  and  that  I  would  have  to  justify  to  the  amount  of  $64,000.  As  soon 
as  I  went  up  there,  and  found  that  this  was  the  case,  I  turned  to  Smith:  "You 
say  you  can  buy  up  these  bonds.  What  will  it  cost  to  get  up  this  bond,  the  penal 
sum  of  which  is  M'.  1,000?  I  cannot  swear  that  I  am  worth  804,000." 
Says  he,  "  I  will  see."  He  goes  to  Mr.  Stanton's  room  and  comes  back.  There 
was  some  little  difference  about  the  price;  I  think  he  asked  $Co0.  He  went 
back  and  forth  two  or  three  times,  and  finally  came  down  to  $600;  and  when 
we  got  as  far  as  that  I  said  to  Smith,  "  Now,  if  Mr.  Stanton  is  going  to  sell  this 
bond,  what  odds  does  it  make  whether  I  swear  I  am  worth  $64,000  or  64  cents  I 
I  cannot  swear  that  I  am  worth  $64,000.  If  he  has  a  mind  to  take  me,  and  not 
swear  me,  I  will  go  on  the  bond.  It  makes  no  odds  to  him  if*  he  sells  this  bond." 
Smith  says,  "  I  will  go  in  and  see  him."  He  went  in  to  see  him  ;  was  gone 
some  little  time;  came  back  and  said,  "  That  will  be  all  right  :  he  will  not  ask 
you  any  questions  at  all."  I  said,  "  Are  you  sure  of  that?"  and  he  said, 
"That  is  understood."  "I  want  it  distinctly  understood,"  says  I,  "that  I 
will  not  swear  to  any  amount  at  all."    He  went  away,  came  back  and  said,  "It 


1(2 


NEW  YORK  CUSTOM  HOUSE. 


is  all  right;  you  will  not  bo  asked  any  questions  at  all."  When  we  went  into 
Mr.  Stanton's  room  Mr.  Middleton  came  up,  and  Mr.  Stanton  Bays,  "  Is  this  Mr. 
Middleton?"  "Yes,  sir."  "Are  you  worth  the  amount  of  that  shipment?" 
Mr.  Middleton  says,  "Yes,  sir."  He  then  turns  round  to  me:  "Is  this  the 
bondsman?"  Says  I,  "Yes,  sir."  "  Will  you  swear?"  (waving  his  hand;)  and 
thai  was  all  there  was  about  it. 

Question.  Now,  1  want  to  recall  your  attention  to  the  point  about  which  I 
was  inquiring  before  this  statement.  What,  in  your  opinion,  was  the  intervening 
time  between  the  last  interview  with  Smith  and  your  entering  Stanton's  room 
with  Mr.  Middleton  ? 

Answer.  I  do  not  think  it  was  ten  minutes,  because  about  that  time  I  stood 
there  waiting  for  Mr.  Middleton  to  get  his  papers  through.  He  had  sent  for  me 
to  come  up  to  the  custom-house.  I  went  to  the  custom-house ;  found  Mr.  Mid- 
dleton, and  he  said,  "  I  will  be  through  in  a  few  minutes."  He  was  standing  in 
a  line,  and  I  stood  there  talking  to  Mr.  Smith  while  Mr.  Middleton  was  getting 
his  papers  through. 

Question,  In  your  former  testimony  you  stated  that  for  some  reason  you  had 
occasion  to  open  the  door  that  led  into  Mr.  Stanton's  office,  and  you  found  him 
leaning  on  the  desk  and  talking  with  Smith  ? 

Answer.  That  was  not  upon  this  occasion,  hut  at  another  time.  Smith  was 
then  negotiating  for  some  other  bonds,  and  staid  a  long  while.  1  was  in  a 
hurry,  as  it  was  just  before  change,  and  I  went  to  the  door  of  the  front  office, 
but  I  could  not  set  him  in  there;  and  I  opened  the  door,  went  in  and  looked 
through  the  other  door;  and  he  was  leaning  on  the  desk  talking  with  Mr. 
Stanton. 

Question.  Was  that  in  reference  to  an  arrangement  for  the  surrender  of  a 
bond? 

Answer.  Yes,  sir. 

Question.  Do  you  recollect  what  one? 
Answer.  I  do  not. 

Question.  Was  it  previous  to,  or  after,  this  arrangement,  about  the  $64,000 
bond  I 

Answer.  It  was  after  the  first  bond,  the  $64,000  bond  ;  in  the  course  of  two 
or  three  weeks  or  a  month  after  that. 

Question.  You  do  not  remember  either,  I  suppose,  the  specific  bond  or  the 
amount  of  it,  when  you  saw  Smith  leaning  on  the  desk  and  talking  to  Stanton  ? 

Answer.  No,  sir;  it  was  a  small  bond;  I  think  he  asked  $150,  and  I  told 
him  that  was  an  exorbitant  price,  and  he  went  back  and  forth  two  or  three 
times  ;  Mr.  Stanton  would  not  yield  at  all.  Smith  said  that  St, niton  said  it  was 
just  as  much  risk  to  take  a  small  bond  as  a  large  one.  On  another  occasion 
when  he  was  negotiating  for  the  surrender  of  a  bond,  $25  split  them,  and  finally 
it  was  settled  by  his  agreeing  to  pay  $100  before  three  o'clock,  Stanton  sav- 
ing that  he  wanted  to  use  that  amount.    This  was  about  two  o'clock. 

March  22,  1864. 

Alfred  T.  Oonklin  recalled. 
By  the  chairman  : 

Question.  Do  you  recollect  whether  the  bonds  that  came  into  your  hands 
were  surrendered  or  given  up  without  the  word  "  cancelled"  being  upon  them, 
without  Mr.  Stanton's  name  being  upon  them  ? 

Answer.  The  names  were  cut  out. 

Question.  Who  cut  them  out  ? 

Answer.  I  cut  them  out  after  they  came  into  my  hands. 

Question.  Do  you  recollect  how  long  it  was  after  the  execution  of  the  bonds 
before  you  obtained  them  through  Mr.  Smith  ] 

Answer.  I  obtained  one  of  these  bonds  inside  of  an  hour  after  it  was  executed. 


NEW  YORK  CUSTOM  HOUSE. 


103 


Question.  Can  you  recollect  who  the  principal  of  the  bond  was  ? 
Answer.  It  was  Middleton  &  Co  ;  1  was  the  security  on  it. 

By  Mr.  Rollins  : 
Question.  Did  you  go  in  with  Middleton  when  he  executed  it  ? 
Answer.  Yes,  sir. 

By  the  chairman  : 
Question.  Was  that  bond  executed  before  Mr.  H.  B.  Stanton  ? 
Answer.  Y"es,  sir. 

Question.  Did  he  charge  you  a  surety  fee  upon  it  ? 

Answer.  I  think  a  dollar  and  a  half  or  two  dollars  ;  that  was  paid,  and  within 
an  hour  from  that  time  1  had  the  bond  in  my  possession. 
Question.  Do  you  know  what  that  bond  cost  ? 
Answer.  Six  hundred  dollars. 

Question.  When  the  bond  came  back,  the  word  "cancelled"  was  not  written 
across  it ;  it  was  simply  handed  to  you  as  you  left  it  ? 

Answer.  Yes,  sir  ;  that  bond  is  destroyed  ;  all  the  rest  of  the  bonds  are  intact, 
with  the  exception  of  the  signatures  of  Middleton  &  Co. 

Question.  What  was  the  cause  of  this  bond  being  destroyed  ? 

Answer.  That  was  the  first  bond  that  was  ever  got  up. 

Question.  For  what  amount  was  it  given  ? 

Answer.  About  $64,000  was  the  penal  sum.  When  this  bond  came  up,  it 
was  a  bond  of  a  larger  amount  than  I  was  willing  to  swear  that  I  was  worth, 
($64,000.)  I  told  Mr.  Smith  these  gentlemen  want  me  to  go  upon  a  bond  for 
$64,000,  and  I  do  not  feel  as  if  I  wanted  to  swear  that  I  am  worth  that ;  and 
the  consequence  is,  that  if  I  do  not  swear  to  that  I  cannot  go  upon  that  bond  ; 
but  as  Mr.  Stanton  is  going  to  give  us  that  bond  back  immediately,  what  odds 
does  it  make  whether  1  swear  that  I  am  worth  $64,000  or  64  cents?  The  bar- 
gain was  made  before  the  bond  was  given  that  the  amount  to  be  paid  for  it  w.ir- 
$600. 

Question.  How  do  you  know  the  bargain  was  made  ? 

Answer.  I  made  it. 

Question.  With  Avhom  ? 

Answer.  Mr.  Smith. 

Question.  And  he  made  it  with  whom  ? 

Answer.  I  suppose  he  made  it  with  Mr.  Stanton. 

Question.  How  was  he  spoken  of  generally  ;  what  designation  was  given 
him  ? 

Answer.  Mr.  Stanton;  I  did  not  know  there  was  a  younger  Stanton  there  ; 
I  did  not  know  Mr.  Stanton  nor  the  boy.  I  made  this  agreement,  and  I  will 
tell  you  how  it  proves  that  it  is  Mr.  Stanton  who  is  concerned.  When  I  told 
Mr.  Smith  that  I  would  not  swear  that  I  was  worth  $64,000,  says  I,  if  you  will 
go  to  Mr.  Stanton  and  get  him  to  agree  not  to  swear  me,  1  will  become  bonds- 
man on  the  bond.  He  went  from  me  into  Mr.  Stanton's  room;  I  stood  in  th< 
rotundo ;  he  went  in  there,  was  gone  from  three  to  five  minutes,  came  back 
again,  and  he  says  it,  is  all  right.  Within  ten  minutes  afterwards,  the  p  ipers 
had  progressed  so  far  that  they  went  into  Mr.  Stanton's  to  have  clearance  made 
and  the  bond  taken.  We  went  in  there  before  Mr.  Stanton  ;  Mr.  Stanton 
turned  to  Mr.  Middleton  and  says  :"  Is  this  Mr.  Middleton  ?"  "Yes."  "Do 
you  swear  that  you  are  worth  the  amount  of  this  shipment,"  (raising  his  hand,) 
"  I  do."  "Is  this  the  bondsman  ?"  (turning  to  me.)  "  Yes,  sir."  "  D<»  you 
swear?"  (raising  his  hand.)    "Yes,  sir."    So  we  carried  out  the  programme. 

Question.  Are  you  willing  that  we  should  subpoena  Mr.  Smith,  right  here 
before  you  ?  We  understand  that  he  has  made  a  dim-rent  statement  in  reference 
to  this  matter. 


104 


NEW   YORK  CUSTOM  HOUSE. 


Answer.  I  have  no  objections.  There  is  some  foundation  for  the  remark,  and 
it  happened  in  this  wise  :  On  Saturday  evening- — I  don't  know  what  day  it  was, 
but  on  the  evening  of  the  day  I  was  examined  by  Mr.  Jordan,  (I  think  it  was 
some  two  months  ago,)  Mr.  Smith  called  upon  me  at  my  house,  and  stated  that 
he  had  been  examined  by  the  Solicitor  of  the  Treasury,  (Mr.  Jordan,)  and  asked 
me  what  I  had  stated  to  the  Solicitor,  and  I  told  him  that  I  had  given  all  the 
facts  in  regard  to  the  transaction  of  the  bonds. 

Question.  How  did  Mr.  Smith  receive  that  communication  from  you,  when 
you  made  that  statement? 

Answer.  He  was  very  much  agitated,  and  stated  that  he,  in  his  examination, 
had  denied  having  known  anything  about  the  transaction  of  the  bonds,  and  if  it 
were  known  he  would  be  excluded  from  the  custom-house  as  a  broker ;  he  was 
very  much  alarmed  in  regard  to  the  matter.  I  stated  to  him  that  the  Solicitor 
of  the  'Treasury  and  Mr.  Denison  had  promised  that  he  should  not  be  disturbed 
in  his  business,  nor  should  have  any  trouble  about  this  matter  in  case  he  came 
up  and  stated  the  facts.  That  was  what  I  told  him  ;  Mr.  Jordan  had  promised 
me  he  would  not  disturb  him.  I  felt  that  if  they  chose  they  could  put  him  out 
of  the  custom-house  immediately,  and  I  did  not  wish  to  see  him  thrown  out  of  his 
business.  He  then  asked  me  if  I  would  not  see  Mr.  Denison  and  Mr.  Jordan 
in  regard  to  the  matter,  and  he  would  go  before  them.  I  called  at  the  custom- 
house on  Monday  morning  and  saw  Mr.  Jordan,  the  Solicitor,  and  Mr.  Denison, 
and  stated  to  them  that  Mr.  Smith-  would  come  before  them  and  give  them  all 
the  facts. 

Question.  Did  he  agree  with  you  at  that  time  to  go  again  before  the  com- 
mis.-ion  and  make  a  full  statement  of  what  the  truth  was  ? 
Answer.  He  did. 

Question.  Did  you  give  him  the  particulars  of  what  you  had  said  ? 
Answer.  No,  sir ;  I  merely  told  him  in  this  wise,  that  I  had  given  them  all 
the  facts  just  as  they  were  in  regard  to  it. 
Question.  And  he  agreed  to  do  it? 
Answer.  Yes,  sir. 

Question.  Did  he  call  upon  the  Solicitor  on  that  Monday  morning  ? 

Answer.  I  called  upon  the  Solicitor  that  Monday  morning,  and  Mr.  Denison 
and  he  together  said  they  would  send  for  him  and  examine  him;  they  did 
send  for  him.  I  understood  that  he  did  not  vary  his  testimony,  as  they  told  me 
afterwards. 

Question.  Is  there  any  other  statement  in  regard  to  these  bonds  which  you 
can  give  us,  as  to  their  execution  or  surrender,  which  will  aid  us  in  our  inves- 
tigations ? 

Answer.  I  can  give  you  one  instance  which  happened  in  buying  up  these 
bonds ;  it  must  be  three  or  four  months  ago;  within  the  last  six  months,  at  any 
rate.  Mr.  Smith  was  negotiating  for  a  bond,  and  he  was  some  time  in  the  room 
with  31  r.  Stanton  ;  I  was  in  the  rotundo  waiting  ;  Mr.  Stanton  generally  occu- 
pied the  room  furthest  west.  I  was  in  a  hurry,  and  after  waiting  for  Smith 
to  come  out,  I  thought  I  would  go  and  see  whether  he  was  in  the  office  ;  I 
looked  in  the  front  office  and  he  was  not  there  ;  and  after  looking  through  the 
glass,  I  opened  the  door  and  stepped  in,  and  I  saw  him  (Stanton)  leaning  on 
the  desk  and  talking  to  Smith  ;  I  never  for  a  moment  supposed  that  there  was 
anything  else  he  was  talking  of  to  Mr.  Stanton  but  that  matter.  I  was  then 
negotiating  for  the  bond,  and  was  waiting  for  an  answer,  for  Smith  to  come  out 
and  give  me  an  answer.  I  looked  through  the  glass  door,  as  I  said  ;  could  not 
see  Smith  ;  came  into  the  room  far  enough  to  see  that  he  was  talking  to  Stan- 
ton, and  then,  of  course,  I  knew  that  he  was  probably  talking  about  the  trans- 
action. He  was  leaning  on  the  desk  talking  to  Mr.  Stanton,  and  I  went  back, 
and  in  a  few  minutes  he  came  out,  and  the  negotiation  was  carried  out.    I  for- 


NEW  YORK  CUSTOM  HOUSE. 


105 


get  which  of  the  bonds  it  was,  but  it  was  one  of  the  bonds  which  are  now  in 
the  hands  of  the  Solicitor. 

Question.  Do  you  recollect  what  was  the  language  of  Smith  when  he  came 
out  after  that? 

Answer.  He  said  I  could  have  the  bond  at  the  price  named.  I  guess  it  was 
ten  days  or  two  weeks  before  the  negotiation  for  the  last  bonds  was  closed  up, 
on  account  of  the  difference  in  price.  When  they  were  closed  up,  we  got  all 
the  bonds  except  one,  I  think  ;  one  of  them  he  never  returned;  that  is  to  say, 
we  bought  one  bond  more  than  we  ever  got  back.  My  view  of  the  matter  is, 
that  these  custom-house  bonds  that  we  bought  were  never  entered  in  the  books 
of  the  custom-house  ;  there  is  no  record  of  them. 

By  Mr.  Rollins : 

Question.  You  understood  when  you  were  giving  the  bonds  that  they  were 
to  be  surrendered  when  you  signed  them1? 
Answer.  Not  all  of  them. 
Question.  You  did  when  you  gave  the  first? 
Answer.  Yes.  sir. 

Question.  It  was  in  your  mind  that  it  was  all  substantially  one  transaction — 
the  giving  and  the  abstraction  of  the  bonds  ?  You.  understood  that  they  were 
to  be  delivered  up  ? 

Answer.  The  first  one — yes,  sir. 

Question.  That  was  substantially  one  negotiation  ] 

Answer.  Before  1  went  upon  that  bond  the  bond  was  agreed  to  be  given  up 
at  a  certain  price.    I  would  not  swear  that  I  was  worth  864,000. 

May  4,  1S64. 

Henry  C.  Smith  sworn  and  examined. 

By  the  chairman : 
Question.  Do  you  reside  in  this  city  ? 
Answer.  Yes,  sir. 

Question.  What  is  your  occupation  ? 
Answer.  Custom-house  broker. 

Question.  How  long  have  you  been  in  that  business  ? 
Answer.  Twenty-six  years. 

Question.  YTou  have  had  something  to  do,  the  committee  understand,  with 
negotiating  for  bonds  given  for  the  exports  of  goods  ? 
Answer.  Yes,  sir. 

Question.  As  we  understand,  you  have  had  something  to  do  with  procuring 
the  cancellation  of  these  bonds? 
Answer.  Yes,  sir. 

Question.  Sometimes  in  the  legitimate  way  of  business,  and  sometimes  not  in 
accordance  with  the  law,  it  seems?  The  committee  would  like  to  know  if  you 
have  any  additional  information  or  recollection  different  from  that  to  which  you 
have  testified  heretofore,  when  you  were  before  the  special  agents  of  the  Trea- 
sury Department? 

Answer.  I  do  not  know  that  I  have;  I  think  I  gave  a  full  and  explicit  state- 
ment then.  I  do  not  recollect  now  the  questions  nor  the  answers  given,  but  I 
am  satisfied  that  I  gave  at  that  time  all  the  information  1  knew  to  the  ques- 
tions propounded  to  me.  There  might  have  been  questior-s  asked  me  which  I 
could  have  answered,  but  I  think  I  gave  full  answers  to  the  questions  asked  of 
me. 

Question.  If  I  recollect  rightly,  the  drift  of  your  testimony  was'to  the  effect 
that  the  negotiations  that  took  place,  with  reference  to  the  cancellation  of  these 
bonds,  were  either  generally  or  exclusively  with  young  Stanton  I 

Answer.  Exclusively  with  him. 


106 


NEW  YORK  CUSTOM  HOUSE. 


Question.  I  would  ask  whether  you  have  any  knowledge  or  reason  to  believe 
that  this  matter  was  directly  known  to  H.  B.  Stanton,  the  father? 

Answer.  No,  sir;  I  hardly  think  he  knew  anything  of  it ;  I  never  had  any 
reason  to  suppose  that  he  did;  I  do  not  think  he  did. 

Question.  Did  you  ever  approach  the  elder  Stanton  (II.  B.)  upon  the  sub- 
ject yourself? 

Answer.  Never. 

By  Mr.  Rollins: 

Question.  Are  you  M  illing  to  say  that  your  testimony  given  on  the  former 
examination  before  the  special  agents  of  the  Treasury  Department  is  a  truthful 
statement,  to  be  so  considered,  and  used  by  this  committee  1 

Answer.  To  the  best  of  my  belief  it  is  a  truthful  statement,  and  I  am  wili  ng 
that  it  should  be  so  used. 

By  Mr.  Le  Blond  : 

Question.  I  wish  you  would  give  us  a  description  of  Mr.  Stanton's  room — 
the  elder  Stanton's  ? 

Answer.  There  were  two  rooms.    [Witness  here  explained  their  location.] 
Question.  In  whose  department  was  the  son  (young  Stanton)  doing  business  I 
Answer.  In  his  father's  department. 
Question.  Where  had  he  his  business  desk  ? 

Answer.  In  the  first  office  as  you  went  in.  The  two  rooms  were  separated 
by  a  partition,  with  a  glass  door. 

Question.  Could  the  elder  Stanton  see  upon  the  desk  of  his  son? 
Answer.  I  really  don't  know  whether  he  could  or  not  from  his  desk. 
Question.  You  could  see  from  young  Stanton's  to  the  elder  Stanton's  ? 
Answer.  Yes,  sir. 

Question.  What  kind  of  a  window  was  it  between  the  two  offices  ? 
Answer.  There  was  a  glass  door  between  the  two  offices  ? 
Question.  You  say  you  could  see  the  elder  Stanton  from  young  Stanton's 
desk  I 

Answer.  Yes,  sir ;  by  standing  at  the  railing  of  the  desk. 
Question.  From  that  location  you  could  see  from  desk  to  desk  ? 
Answer.  Yes,  sir ;  the  son  transacted  most  of  his  business  at  the  desk  on  the 
railing. 

Question.  When  you  went  to  negotiate  this  $64,000  bond  for  Middleton  & 
Co.,  upon  which  Mr.  Conklin  was  bail,  where  did  you  make  that  negotiation  ! 
Answer.  All  the  arrangements  were  made  at  this  railing. 
Question.  Was  the  elder  Stanton  at  that  time  at  his  desk  ? 
Answer.  I  do  not  recollect. 
Question.  Do  you  recollect  seeing  him  ? 

Answer.  I  would  not  like  to  swear  to  it,  because  I  do  not  recollect;  he  was 
almost  always  in  his  office  during  office  hours. 

Question.  Had  you  had  any  arrangement  with  young  Stanton  for  the  cancel- 
lation of  these  bonds  prior  to  this  particular  transaction  in  reference  to  the 
864,000  bond  ? 

Answer.  Never  had  anything  to  do  with  him  except  these  bonds  of  Middle- 
ton  &  Co. 

Question.  How  did  you  come  to  approach  him  on  the  subject? 
Answer.  I  will  give  the  same  answer  as  I  did  before.  *  I  don't  know  whether 
I  approached  him  or  he  suggested  it ;  I  could  not  swear  as  to  that. 
Question.  What  is  his  age  ? 

Answer.  I  should  think  he  might  be  23  or  25  ;  he  might  not  be  over  22  or  23. 
Question.  What  consideration  did  you  get  for  transacting  this  business  for 
Mr.  Conklin  ? 


NEW  YORK  CUSTOM  HOUSE. 


107 


Answer.  We  got  different  sums  on  different  bonds — T  forget  the  amounts. 

Question.  How  much  did  you  get  on  the  $64,000  bond? 

Answer.  I  never  knew  anything  of  the  bonds;  Mr.  Conklin  would  give  me 
a  small  piece  of  paper — a  memorandum — "that  such  and  such  a  bond  has  been 
given,  and  I  wish  you  would  get  it  up  ;"  and  the  amount  might  not  be  stated. 

Question.  I  would  ask  whether  young  Stanton  was  in  the  habit  of  taking 
these  bonds  to  his  father  for  acknowledgment,  saying  that  he  would  fill  out  the 
body  ? 

Answer.  Yes,  sir;  ready  for  signing.  At  times  they  would  be  signed  before 
sending  them;  sometimes  the  father  was  not  there;  there  were  other  notaries 
in  the  building. 

Question.  At  the  time  these  bonds  were  made,  and  particularly  this  first  bond 
of  Middleton  &  Co.,  upon  which  Conklin  was  surety,  did  you  make  an  arrange- 
ment with  young  Stanton  that  Mr.  Conklin  was  not  to  be  inquired  of  as  to  the 
amount  of  property  he  was  worth? 

Answer.  Mr.  Conklin  suggested  whether  he  was  competent  to  go  as  surety 
upon  it,  and  I  told  him  that  I  thought  the  matter  might  be  arranged.  At  times 
before  he,  Stanton,  (the  elder  Stanton.)  was  very  careless  in  taking  depositions 
of  parties,  and  I  took  it  for  granted  that  he  might  be  so  in  this  instance. 

Question.  Did  you  talk  to  young  Stanton  about  it  ? 

Answer.  He  had  nothing  to  do  with  it ;  it  was  the  father  who  took  the  depo- 
sitions. 

Question.  What  reply  did  you  make  when  Mr.  Conklin  told  you  that  he 
could  not  justify  to  that  amount? 

Answer.  There  was  a  question  whether  he  could  justify,  and  I  told  him  that 
the  matter  might  be  arranged,  or  fixed.  When  he  came  out  he  remarked  to  me 
that  it  was  all  right. 

Question.  Why  did  you  say  to  him  that  the  matter  might  be  arranged,  when 
you  have  already  said  that  the  young  man  was  the  one  with  whom  you  trans- 
acted this  business;  that  you  had  never  transacted  any  at  all  with  the  elder 
Stanton,  and  at  the  same  time  you  say  that  the  elder  Stanton  was  the  man  to 
take  the  acknowledgment  of  these  bonds  ? 

Answer.  Yes,  sir ;  I  made  this  remark,  that  at  times  Mr.  Stanton  was  care- 
less. 

Question.  Why  do  you  use  the  words  "  that  an  arrangement  might  be  made,'* 
which  presupposes  a  previous  understanding  between  you  ? 

Answer.  I  might  have  said  to  him  I  think  it  can  be  fixed ;  I  might  have  said 
you  had  better  go  on,  as  I  fancy  there  will  be  no  trouble.  I  don't  know  what 
occurred  at  the  time ;  I  might  have  said,  "  don't  borrow  trouble  ;  wait  until  he 
questions  your  ability  to  go  as  surety."  What  impressed  that  subject  upon  my 
mind  was  that  I  recollect  he  said  he  had  no  trouble. 

Question.  You  are  acquainted  with  Stanton's  mode  of  doing  business  :  now. 
will  you  give  any  reason  why  he  should  have  omitted  to  ask  of  Mr.  Conklin 
the  same  questions  as  to  his  pecuniary  standing  in  this  case,  as  you  say  his 
usual  custom  was  ? 

Answer.  I  don't  know  why  he  should  on  that  one. 

Question.  How  long  had  young  Stanton  been  in  his  father's  bureau  ? 

Answer.  I  think  ever  since  it  was  established,  either  he  or  his  brother :  I 
think  he  was  there  from  the  first. 

Question.  What  were  his  habits? 

Answer.  I  don't  know  anythiug  of  him  except  seeing  him  in  the  custom- 
house ;  I  never  knew  him  until  1  saw  him  there. 
Question.  To  whom  did  you  pay  this  money  \ 
Answer.  To  young  Stanton. 

Question.  What  is  the  amount  of  money  you  paid  upon  these  several  bonds  I 
Answer.  He  got  $25  on  each  bond. 


108 


NEW  YORK  CUSTOM  HOUSE. 


Question.  Just  give  us  the  amount  that  you  received  upon  each  one  of  these 
bonds. 

Answer.  I  don't  know  that  I  could. 

Question.  I  low  much  did  you  receive  upon  this  $64,000  bond  ? 

Answer.  As  I  said  before,  1  don't  recollect  the  amount.  1  could  not  swear 
what  was  the  amount  of  any  of  the  bonds  ;  what  I  swore  to  at  the  time  was 
correct. 

Question.  Do  you  recollect  receiving  upon  one  bond  $600  ? 

Answer.  If  you  could  give  me  the  amount  of  the  bonds  I  could  tell  better; 
I  think  I  did ;  I  will  not  be  positive, 

Question.  If  you  received  $(500,  how  much  of  that  money  did  you  pay  to 
young  Stanton  ? 

Answer.  Only  $25  on  each  one. 

Question.  Who  got  the  residue'? 

Answer.  I  did  ;  I  dislike  to  swear  positively  to  the  amounts. 
Question.  Did  you  at  another  time  receive  $50  ? 
Answer.  Yes,  sir. 

Question.  Two  hundred  dollars  at  another  time  ? 

Answer.  I  do  not  know ;  I  am  rather  inclined  to  say  no  on  account  of  the 
amount ;  I  would  not  like  to  answer,  for  I  do  not  really  recollect. 
Question.  Did  you  receive  at  another  time  $110. 
Answer.  I  think  I  did. 

Question.  One  hundred  and  seventy-five  dollars  at  another  time? 
Answer.  I  think  I  did. 
Question.  At  another  $100? 
Answer.  Yes,  sir. 
Question.  At  another  $85 ? 

Answer.  I  think  the  amounts  are  perfectly  correct  that  you  have  given. 
Question.  What  was  the  aggregate  amount  that  you  received  ;  can  you  tell 
that;  was  it  SI, 380  ? 

Answer.  I  should  think  not  as  much  as  that. 

Question.  And  in  each  of  these  instances  you  gave  but  $25  to  young  Stanton  ? 
Answer.  To  that  I  can  swear  positively. 

Question.  Did  you  communicate  to  young  Stanton  the  amount  you  were  to 
receive  upon  each  one  of  those  bonds  ? 
Answer.  No,  sir. 

Question.  Did  you  communicate  to  Mr.  Conklin  the  amount  you  had  to  pay  ? 

Answer.  He  never  knew  the  amount  young  Stanton  got.    He  would  ask  me, 

I  want  to  cancel  this  bond,"  and  I  would  say  it  could  be  done  for  a  certain 
sum.  and  lie  would  give  it  to  me,  or  lie  would  say  I  do  not  propose  to  give  as 
much  as  that,  and  1  will  give  you  so  much. 

Question.  Is  Stanton  a  young  man  of  ordinary  mind  % 

Answer.  I  think  he  has  a  little  more  than  ordinary  education — his  business 
qualifications  I  had  no  opportunity  of  judging  of;  speaking  of  that,  I  know 
that  we  have  had  many  conversations  in  the  custom-house  as  to  facilities  for 
education,  and  I  should  judge  that  he  was  a  young  man  of  more  than  common 
education. 

Question.  Did  you  at  any  time  suggest  to  him  that  this  abstraction  of  bonds 
was  illegal  ? 

Answer.  I  don't  know  whether  the  conversation  ever  occurred.  I  felt  satis- 
fied upon  one  thing  :  Mr.  Conklin  on  every  bond  said  everything  was  perfectly 
right,  and  he  would  get  the  certificates  for  everything.  He  said  everything 
was  going  on  right,  and  his  object  was  to  save  trouble.  1  had  implicit  faith  in 
the  house  of  Middleton  &  Co. 

Question.  And  yet  you  knew  that  it  was  a  violation  of  the  laws  of  the  cus- 
tom-house? 


NEW  YORK  CUSTOM  HOUSE. 


1(J(J 


Answer.  I  must  say  that  I  did  not  suppose  that  everything  was  perfectly 
legitimate. 

Questions.  In  any  of  your  conversations  did  he  say  to  you  that  he  knew  this 
thing-  was  illegal  ? 

Answer.  I  do  not  think  that  this  conversation  occurred.  There  would  be  a 
small  slip  of  paper  handed  to  young  Stanton,  and  he  would  give  the  bond  back. 
Mr.  Conklin  would  give  me  a  memorandum,  "Middleton  &  ( lo.,  by  the  schooner 
Jane,"  or  whatever  vessel  it  was,  and  that  would  be  handed  to  young  Stanton, 
and  he  would  give  me  the  bond. 

Question.  Would  you  pay  him  the  money  immediately? 

Answer.  Immediately. 

Question.  Right  at  the  desk? 

Answer.  Sometimes  he  would  come  and  see  me  in  the  rotundo,  and  ask  me 
for  the  money. 

Question.  Was  any  of  this  money  paid  in  the  presence  of  anybody  else  I 
Answer.  There  might  have  been  casual  observers. 

By  the  chairman  : 
Question.  Where  were  these  bonds  kept  ? 

Answer.  Mr.  Stanton,  on  taking  the  depositions,  always  put  them  in  his  drawers. 

Question.  When  you  negotiated  with  young  Stanton,  he  would  pass  into  his 
father's  room  and  take  the  bond  ? 

Answer.  The  parties  who  signed  the  bonds  carried  them  in  to  the  elder  Stanton. 

Question.  When  you  gave  young  Stanton  the  slip  you  speak  of  calling  for  a 
bond,  1  want  to  know  where  he  got  the  bond  from  ? 

Answer.  Mr.  Stanton  would  put  them  in  a  case  he  had;  it  was  in  the  room 
where  young  Stanton  was;  a  deposition  taken  to-day  would  go  into  young 
Stanton's  room. 

By  Mr.  Le  Blond  : 

Question.  When  you  called  for  a  particular  bond,  did  you  at  any  time  have 
to  go  into  the  elder  Stanton's  room  to  procure  that  bond  ? 

Answer.  I  think  he  said  in  one  instance  that  it  had  not  left  his  father's  room. 
Mr.  Oonklin  said  to  me  that  he  had  given  such  a  bond,  and  "will  yen  see  aboul 
it,"  and  I  asked  young  Stanton,  and  he  said  it  was  in  his  father's  room,  and  1m 
did  not  give  it  to  me  at  that  time. 

Question.  You  say  you  approached  young  Stanton  in  consequence  of  rumors 
afloat  in  your  city  :  had  you  known  of  any  particular  transactions  where  parties 
had  purchased  other  bonds  in  the  manner  you  did  these  ? 

Answer.  No,  sir;  except  the  rumors  I  heard  all  over  the  building  that  such 
things  were  done  in  that  room;  and  when  Mr.  Conklin  made  the  suggestion  to 
me  I  thought  that  was  the  place  to  inquire. 

Question.  Did  Mr.  Conklin  make  the  suggestion  to  you  first  ? 

Answer.  I  never  had  any  business  with  Mr.  Conklin  until  this  thing  trans- 
pired. 

Question.  Who  made  the  first  advances — he  to  you  or  you  to  him  \ 
Answer.  Mr.  Conklin  spoke  about  having  such  a  document,  and  of  course  I 
would  not  know  that  he  was  on  any  bouds  unless  he  had  mentioned  it. 

By  Mr.  Rollins : 

Question.  You  have  stated  that  you  entered  into  these  negotiations  with 
young  Stanton  because  of  rumors  that  were  floating  round. 
Answer.  Yes,  sir. 

Question.  From  whom  did  you  receive  the  first  intimation  that  this  iniquity 
could  be  practiced? 

Answer.  It  was  common  talk. 


110 


NEW   YORK  CUSTOM  HOUSE, 


Question.  I  want  you  to  put  your  finger  on  the  man. 

Answi  r.  I  don't  know  that  I  could.  Allow  me  to  suggest  that  the  New  York 
custom-house  is  a  very  big-  place,  and  that  we  arc  constantly  hearing  this  story 
and  that  story. 

Question.  Yrou  could  not  hear  such  a  rumor  without  somebody  communicating 
it  to  you. 

Answer.  Of  course. 
Question.  Who  I 

Answer.  I  don't  know,  more  than  it  was  the  common  talk. 

Question.  Try  and  refresh  your  recollection,  and  see  if  you  cannot  inform 
me  who  first  suggested  that  these  bonds  could  be  cancelled  or  abstracted  from 
the  custom-house  in  the  manner  in  which  you  subsequently  accomplished  it. 

Answer.  I  don't  know  who  mentioned  it  first. 

Question.  Do  you  recollect  any  man  who  mentioned  it? 

Answer.  1  don't  recollect  any  person  in  particular. 

Question.  Do  you  recollect  any  person  in  general? 

Answer.  No,  sir. 

Question.  Do  you  then  undertake  to  swear  that  you  heard  these  rumors  for 
two  years  or  for  a  longer  period  of  time,  from  various  parties,  and  you  cannot 
now  state  any  living  human  being  who  communicated  these  suspicions  to  you? 

Answer.  During  seasons  when  there  is  nothing  doing  in  the  custom-house 
there  will  be  a  knot  of  brokers  standing  in  one  corner  of  the  room,  and  the 
clerks  will  come  out;  one  will  suggest  such  a  thing  is  going  on;  "I  read  it  in 
the  Sunday  Atlas  or  some  other  Sunday  paper."  Every  broker  in  the  building 
might  have  suggested  that  to  me,  and  1  would  not  be  able  to  swear  to  any  par- 
ticular one. 

Question.  I  want  you  to  name  some  man  who  could  have  ever  suggested  to 
you  the  idea  that  these  bonds  could  be  abstracted  ? 

Answer.  I  might  give  you  an  answer,  and  say  that  every  broker  around  the 
rot  undo  has  talked  this. 

Question.  Name  one  1 

Answer.  I  would  not  positively  swear  that  such  a  man  has  said  so;  every 
broker  in  the  building  might  have  said  so;  I  would  dislike  to  swear  that  any 
one  in  particular  has  done  this. 

Question.  You  got  the  suggestion  that  Stanton  could  be  approached? 

Answer.  Yes,  sir;  it  has  been  the  common  talk. 

Question.  What  Mr.  Stanton? 

Answer.  It  was  the  common  talk  as  to  the  elder  Stanton. 
Question.  Y^ou  got  the  suggestion  that  you  could  get -these  bonds  through 
the  elder  Stanton? 

Answer.  1  have  heard  that. 

Question.  You  remember  that  perfectly  well,  but  you  do  not  remember  the 
further  fact  who  it  was  that  communicated  the  fact  to  you? 

Answer.  I  don't  know  that  any  one  person  said  positively  to  me:  "Mr. 
Smith,  bonds  could  be;  got  from  Mr.  Stanton;"  but  I  will  swear  positively  that 
it  was  the  common  talk  around  the  building. 

By  Mr.  Le  Blond : 

Question.  You  say  that  by  this  common  rumor  it  was  understood  that  bonds 
might  be  had  in  this  way  from  the  elder  Stanton;  why,  then,  would  you  go  to 
the  younger  Stanton  instead  of  the  elder? 

Answer.  1  don't  know  why,  except  that  I  came  more  directly  in  contact  with 
him. 

Question.  Had  you  heard  in  this  general  conversation  in  the  rotundo  that  it 
could  be  done  through  the  younger  Stanton? 

Answer.  I  understood  that  the  whole  office  was  rotten;  that  anything  could 


NEW  YORK  CUSTOM  HOUSE. 


Ill 


be  done  there.  They  said  th.it  there  was  one  party  (here  that  could  not  be 
approached,  (Mr.  Waddell;)  that  he  was  the  only  honest  man  in  the  depart- 
ment. 

Question.  How  long  has  this  reputation  of  that  department  existed? 
Answer.  Since  that  bureau  was  established;  I  was  away  in  the  army  when 
it  was  first  established. 

Question.  How  long  has  that  bureau  been  established  ? 

Answer.  I  gbt  home  from  the  army  January,  1862;  it  was  established  then  ; 
1  went  away  in  May,  1S61. 

Question.  Was  that  the  reputation  of  this  department  upon  your  return  from 
the  army  ? 

Answer.  Yes,  sir. 

Question.  And  has  continued  ever  since  ? 

Answer.  I  have  always  heard  so  to  the  present  time. 

Question.  You  then  called  upon  young  Stanton  because  he  was  the  handiest  ! 
Answer.  I  supposed  he  was  the  most  come-at-able. 

Question.  Did  you  hear  him  spoken  of  in  that  respect  as  frequently  as  you 
did  of  the  elder  Stanton  1 

Answer.  It  was  the  common  remark — he  was  one  of  the  Stanton  family ; 
there  appeared  to  be  little  faith  in  the  Stanton  family. 

Question.  That  they  were  approachable  so  far  as  dollars  and  cents  were  con- 
cerned? 

Answer.  That  is  what  I  have  heard;  I  mean  nothing  disrespectful  to  the 
gentleman;  1  speak  of  it  as  the  rumor. 

By  Mr.  Kollins : 

Question.  Yrou  say  that  this  was  common  rumor;  do  you  mean  to  say  that 
this  was  the  common  remark  on  'change? 

Answer.  I  mean  in  the  rotundo  of  the  custom-house  ;  outside  of  the  building, 
the  only  place  that  I  ever  heard  of  it  I  saw  it  published  in  the  Sunday  papers 
that  certain  things  could  be  got  through  by  paying  for  them,  and  that  there 
never  was  such  corruption  and  bribery  as  in  the  present  custom-house.  That 
w  as  one  of  the  rumors  I  read  in  the  papers.  Of  course,  Monday  morning,  it' 
there  was  one  of  the  clerks  spoken  of,  we  would  bring  the  paper  down  and  show- 
it  to  the  other  clerks,  and  have  a  laugh  over  it. 

Question.  Do  you  think  that  the  general  opinion  as  to  the  Stantons  was  such 
as  you  indicate  among  all  the  merchants  \ 

Answer.  Xo,  sir;  this  was  simply  among  parties  in  the  building.  I  think 
the  brokers  got  their  ideas  from  this  one  peculiar  circumstance,  that  when  some 
gentlemen  came  in  to  become  sureties,  he  would  be  very  particular  in  asking 
how  much  property  they  had,  while  in  regard  to  others  he  would  not  be  so 
particular.  It  was  rather  the  opinion  of  the  brokers  than  of  the  mercantile  com- 
munity. 

Question.  In  these  negotiations  did  vou  have  anything  to  do  personally  with 
Middleton  &  Co.  ? 
Answer.  No,  sir. 

Question.  Which  of  the  Middletons  transacted  the  business  ? 

Answer.  I  never  went  in  with  them  when  they  signed  the  bonds ;  I  had 
nothing  to  do  with  that;  I  presume  the  principal  and  the  surety  went  in 
together.    Mr.  Conklin  was  the  only  man  I  had  anything  to  do  with. 

By  Mr.  Le  Blond : 

Question.  Did  you  ever  divide  any  part  of  the  money  that  you  received  for 
procuring  the  abstraction  of  the  bonds  with  any  one  else? 
Answer.  No,  sir. 

Question.  You  kept  that  yourself  ? 


112 


NEW  YORK  CUSTOM  HOUSE. 


Answer.  Yes,  sir. 

Question.  No  person  was  in  partnership  with  you  or  had  any  interest  in  it 
whatever  ? 

Answer.  No,  sir. 

Question.  You  never  gave  any  part  of  it  to  any  other  individual  in  the  cus- 
tom-house to  accomplish  that  object? 
Answer.  No,  sir. 
Question.  Or  out  of  it  ? 
Answer.  No,  sir. 

Question.  You  speak  of  Mr.  Stanton  as  receiving  fees  ? 
Answer.  Yes,  sir. 

Question.  What  fees  do  you  allude  to? 

Answer.  The  charge  for  taking  the  acknowledgment. 

Question.  How  much  .; 

Answer.  1  think  the  charge  was  fifty  cents  where  there  was  one  party;  if 
there  were  two,  the  charge  was  seventy-five  cents  or  a  dollar;  I  think  he 
charged  according  to  the  trouble. 

Question.  Did  he  require  the  parties  to  pay  a  government  fee  of  forty  cents  ? 

Answer.  He  required  a  twenty-five  cent  government  stamp;  they  require  a 
forty-cent  fee  now,  which  he  did  not  then;  he  would  collect  his  notarial  fee. 

By  the  chairman  : 
Question.  Have  you  seen  Mr.  Stanton  lately  ? 

Answer.  I  think  the  last  time  1  saw  him  was  when  Mr.  Bailey  was  here  ;  J 
think  that  is  the  only  time  I  have  seen  him  since  he  left  the  custom-house. 

By  Mr.  Le  Blond : 

Question.  Did  Mr.  Stanton  intimate  to  you  then  anything  in  regard  to  this 
transaction  ? 

Answer.  Xo,  sir;  he  was  in  the  room  when  I  went  in;  I  had  no  conversa- 
tion in  reference  to  this  matter  before  this  gentleman,  and  no  private  conversation. 

Testimony  of  Henry  C.  Smith,  recalled. 

New  York,  March  23,  1864. 

Henry  C.  Smith  recalled. 

By  Mr.  Le  Blond  : 
Question.  What  time  in  the  day  did  you  generally  negotiate  with  young 
Stanton,  as  you  say,  to  obtain  these  Middleton  bonds  ? 
Answer.  Whenever  Mr.  Oonklin  would  come  up. 

Question.  What  time  in  the  day  was  it  that  you  obtained  this  864,000  bond  ? 

Answer.  I  could  not  say  what  time  of  the  day  it  was.  It  was  always  be- 
tween ten  and  three  that  1  negotiated  for  them. 

Question.  Was  the  elder  Stanton  at  his  desk  during  the  time  that  you  made 
these  negotiations  ? 

Answer.  I  would  not  like  to  say  whether  he  was  or  not. 

Question.  Was  he  there  at  the  time  that  you  made  the  negotiation  about  this 
664,000  bond? 

Answer.  I  don't  know  whether  he  was  at  that  time.  He  may  have  been 
there.    I  think  he  was  in  his  office  most  generally  during  business  hours. 

Question.  Was  he  in  his  room  at  the  time  you  had  this  cjnversation  with  the 
younger  Stanton  with  reference  to  these  bonds  '? 

Answer.  Without  being  able  to  swear  positively,  I  should  say  that  the 
chances  were  that  he  was  in  his  office.  He  was  there  most  generally  during 
business  hours. 


NEW  YORK  CUSTOM  HOUSE. 


113 


Question.  Did  you  obtain  any  of  these  bonds  the  same  day  that  they  were 
given  ? 

Answer.  1  think  most  generally  they  were  given  the  next  day.  I  mean  they 
were  delivered.    It  might  have  been  after  three  o'cloek. 

Question.  You  obtained  them  the  second  day  after  they  were  given  I 
Answer.  Generally  the  next  day. 

Question.  Are  you  sure  that  you  obtained  any  on  the  same  day  that  a  bond 
was  given,  or  not  ? 

Answer.  I  don't  know  about  that.  I  should  hardly  suppose  they  were  given 
during  office  hours.    It  might  have  been  just  after  three  o'clock. 

Question.  Do  you  know  whether  you  obtained  one  the  very  day  it  was  given? 

Answer.  I  should  think  not,  from  the  fact  that  they  always  remained  in  the 
elder  Stanton's  office  until  the  second  day. 

Question.  Now  I  want  to  ask  you  if  this  864,000  bond  was  not  obtained  the 
very  day  it  was  given,  and  in  two  hours  after  it  was  given  I 

Answer.  I  do  not  recollect  it. 

Question.  Do  you  not  know  it  was  ? 

Answer.  I  do  not. 

Question.  Did  you  not  upon  that  very  day,  and  in  two  hours  after  that  bond 
was  given,  go  to  the  desk  of  the  elder  Stanton,  lean  upon  it,  and  talk  with  the 
elder  Stanton  upon  that  or  some  other  subject  ? 

Answer.  No,  sir.    I  never  mentioned  a  word  with  him  upon  that  subject. 

Question.  Were  you  ever  connected  with  any  parties  in  reference  to  the  im- 
portation of  cotton,  or  with  reference  to  any  cotton  trade  whatever  ? 

Answer.  No,  sir. 

Question.  Did  you  ever  transact  any  business  in  the  custom-house  with 
reference  to  cotton  ? 

Answer.  I  have  made  a  hundred  different  entries. 

Question.  Did  you,  during  the  time  you  were  negotiating  about  the  Middle- 
ton  bonds,  go  to  Mr.  Stanton's  desk  expressly  for  the  purpose  of  talking  with 
him  about  cotton,  or  anything  else  % 

Answer.  That  I  don't  know. 

Question.  Were  you  in  the  habit  of  going  to  Mr.  Stanton's  desk  (elder  Stan- 
ton) and  talking  with  him  about  any  matter  that  did  not  pertain  to  the  business 
you  had  immediately  under  your  control  ? 

Answer.  Never.  I  never  knew  the  man  other  than  as  a  public  official,  unless 
you  came  to  me  and  asked  a  question,  and  the  only  way  was  to  go  to  Mr.  Stan- 
ton having  charge  of  that  room  ;  then  I  would  go. 

Question.  Did  you,  at  the  time  you  were  negotiating  this  -S6  1,000  bond,  go 
into  the  elder  Stanton's  room  at  all  ? 

Answer.  As  regards  that  matter,  I  did  not.  I  never  had'  a  word  with  Mr. 
Stanton  upon  the  subject  of  any  of  the  bonds. 

Question.  Did  you  not,  on  the  very  day  you  negotiated  the  $64,000  bond,  go 
to  the  elder  Stanton's  desk,  lean  upon  it,  and  talk  with  him  about  it  ? 

Answer.  I  never  opened  my  mouth  to  Mr.  Stanton  upon  that  subject. 

Question.  Did  you  talk  with  him  upon  any  other  subject? 

Answer.  That  I  would  not  like  to  say.  I  might  have  been  in  there  a  dozen 
times. 

Question.  When  you  entered  the  custom-house,  did  you  not  go  for  the  pur- 
pose of  negotiating  the  lifting  of  that  SG4,000  bond,  and  for  no  other  purpose  \ 

Answer.  A  little  piece  of  paper  would  be  given  me  saying  what  papers  were 
wanted.  I  might  have  had  some  other  business.  I  might  have  had  seme  cap- 
tain with  me.  Whether  I  went  in  with  a  captain,  or  had  the  memorandum 
alone,  I  cannot  remember. 

Question.  Can  you  not  remember  whether  you  had  some  other  business  ! 

Answer.  I  cannot  tell.  1  might  have  had  other  papers  with  me.  After  the 
II.  Rep.  Com.  Ill  S 


114 


NEW  YORK  CUSTOM  HOUSE. 


memorandum  was  given  me  by  Mr.  Conklin,  and  before  going  in.  a  captain 
might  ask  me  to  go  on  and  get  a  clearance  for  him. 

Question.  Did  you  not  leave  Mr.  Conklin  on  the  outside  waiting  until  you 
returned  ? 

Answer.  Yes.  sir. 

Question.  Is  it  at  all  likely  that  you  would  go  on  negotiating  with  any  other 
person  while  he  was  waiting  for  you  ? 

Answer.  I  could  leave  the  captain  to  sign  his  bonds,  and  then  come  out  with 
his  memorandum. 

Question.  Could  not  a  man  stand  at  the  door  that  opened  into  the  elder  Stan- 
ton's room  from  the  rotundo,  loojt  through  the  window,  and  see  whether  you  were 
at  the  elder  Stanton's  desk  or  not ? 

Answer.  I  think  not,  because  I  am  positive  that  the  glass  is  ground. 

Question.  Are  there  not  streaks  through  it  that  are  not  ground,  so  that  yon 
can  see  as  I  have  stated  ? 

Answer.  I  never  noticed. 

Question.  You  say  that  you  have  no  recollection  that  you  were  at  the  elder 
Stanton's  desk  during  the  negotiation  of  the  8G4.000  bond? 

Answer.  1  had  no  object  in  going  to  the  elder  Stanton's  room.  The  only 
thing  that  would  take  me  there  would  be  for  me  to  bring  an  acknowledgment  of 
that  bond. 

Question.  We  have  it  in  proof  before  us  that  when  you  left  Mr.  Conklin  you 
went  into  the  elder  Stanton's  room,  went  to  his  desk,  and  stood  there  talking 
with  him;  that  you  came  out  and  communicated  to  Mr.  Conklin  the  met  that 
lie  (Stanton)  had  agreed  to  the  terms  of  the  negotiation  ;  that  you  negotiated 
with  Mr.  Stanton  that  Mr.  Conklin  was  not  to  be  sworn  thus  and  so. 

Answer.  I  never,  directly  or  indirectly,  had  one  single  word  to  say  to  the 
elder  Stanton  about  that  single  bond. 

Question.  Did  you  not  go  to  him  upon  the  point  of  the  sufficiency  of  the 
bond? 

Answer.  You  asked  me  that  same  question  when  you  examined  me  before. 
I  am  positive  in  swearing  now,  as  then,  that  I  never  had  a  word  to  say  to  the 
elder  Stanton  as  regards  justifying  upon  any  bond,  directly  or  indirectly. 

By  the  chairman  : 

Question.  Who  does  determine  as  to  the  sufficiency  of  the  bonds  ? 
Answer.  At  that  time  the  elder  Stanton  did. 

Question.  You  just  stated  that  you  never  had  a  word  with  him  about  the 
surety  of  this  specific  bond. 

Answer.  I  never  had  a  word  to  say  to  him  about  the  Middleton  bonds. 

Question.  You  did  have  a  conversation  with  him  about  the  sufficiency  of  that 
bond  ? 

Answer.  No,  sir. 

Question.  Were  you  in  the  room  when  tin1  x'34,000  bond  was  executed? 

Answer.  No,  sir.    1  had  nothing  to  do  with  executing  their  bonds. 

Question.  It  is  in  proof  before  the  committee  that  the  surety  said  he  could  not 
swear  that  he  was  worth  $64,000,  when  asked  to  go  upon  this  bond  ;  that  you 
negotiated  that  he  should  not  be  called  upon  to  testify;  that  you  came  back 
and  told  him  it  was  the  agreement  he  should  not  swear. 

Answer.  In  giving  my  testimony  before,  one  gentleman  asked  me  the  ques- 
tion whether  I  did  see  the  elder  Stanton  and  get  him  to  swear  the  man  in  a 
loose  way.  I  then  told  him  what  1  tell  you,  that  I  pretended  to  sec  this  gen- 
tleman for  the  purpose  of  mentioning  it  to  Mr.  Conklin,  and  when  I  went  to 
Mr.  Conklin  I  said  it  was  all  right. 

Question.  You  swear  that  you  did  pretend  to  see  Mr.  Stanton? 

Answer.  1  did  before  in  my  testimony.    Mr.  Conklin  spoke  about  the  pecu- 


NEW  YORK  CUSTOM  HOUSE. 


115 


liarity  of  the  bond'.  There  was  something  spoken  of  about  the  bond.  I  said 
J  will  see  Mr.  Stanton  about  it.  I  pretended  to  see  the  elder  Stanton.  I  swore 
that  I  did  not  go  into  the  elder  Stanton's  room,  and  never  said  a  word  to  him 
upon  the  subject. 

By  Mr.  Le  Blond  : 

Question.  Did  you  go  before  the  Solicitor  of  the  Treasury  to  give  testimony  I 
Answer.  I  went  before  Mr.  Bailey. 
Question.  And  gave  testimony  before  him  ? 
Answer.  Yes,  sir. 

Question.  Did  you  commence  your  examination  and  then  stop  before  it  was 
concluded  ? 

Answer.  I  went  one  day,  and  there  was  no  examination  whatever.  He  asked 
me  some  questions,  and  I  said  I  did  not  know  anything  about  it.  I  felt  I  had 
rather  be  thought  of  telling  an  untruth  than  commit  a  breach  of  what  I  felt  to 
be  confidence  between  Conklin  and  myself.  He  said  he  knew  all  about  it,  and 
that  he  was  through  with  me  for  the  day.  The  next  day  I  was  sent  for  again, 
and  I  was  put  under  oath.  In  the  meanwhile  I  saw  Mr.  Conklin  and  told  him 
what  had  transpired.  I  told  him  that  I  denied  knowing  anything  about  the 
matter.  He  says,  I  have  been  before  the  committee  and  I  have  told  everything; 
and  then  I  said,  I  will  tell  everything. 

Question.  Did  you  see  Stanton  between  the  time  you  first  went  before  that 
commission  until  the  time  you  appeared  before  us  the  other  day  ? 

Answer.  I  did  not  see  Mr.  Stanton  until  I  met  him  in  the  room  before  Mr. 
Bailey — the  second  visit  of  Mr.  Bailey — until  I  saw  him  again  to-day. 

Question.  Did  you  meet  him  at  any  time  at  one  of  the  hotels  of  this  city  ? 

Answer.  Xo,  sir.  I  don't  know  as  I  have  ever  seen  him  since,  except  to-day. 
I  never  had  a  moment's  conversation  with  him. 

Question.  Have  you  ever  had  any  conversation  with  Mr.  Stanton  since  you 
obtained  these  bonds  ? 

Answer.  Xo,  sir,  I  have  never  seen  him  since ;  never  have  had  any  commu- 
nication with  him  in  any  shape  or  form. 

Question.  Has  any  friend  of  Stanton  seen  you  ? 

Answer.  Xo,  sir. 

Question.  Did  you  say  to  Mr.  Conklin,  or  anybody  else,  that  this  investi- 
gating committee,  before  which  you  appeared,  did  not  believe  a  word  you  said  ? 

Answer.  I  made  that  remark.  I  felt  very  unpleasant  when  I  went  before  the 
committee,  feeling  that  I  had  told  them  an  untruth,  and  to  be  compelled  to  come 
the  next  day  and  say  that  I  had  told  an  untruth,  I  may  have  said  that  to  fifty 
persons. 

Question.  Have  you  not  put  yourself  in  the  same  position  in  saying  to  Mr. 
Conklin  and  others  that  you  were  negotiating  this  matter  with  the  elder  Stanton, 
when,  in  met,  you  had  nothing  to  do  with  him  ? 

Answer.  I  said  to  Mr.  Conklin  that  I  negotiated  these  matters  with  Mr. 
Stanton.  He  has  told  me  since  that  he  was  under  the  impression  that  it  was 
the  elder  Stanton  I  had  reference  to. 

Question.  You  also  gave  him  to  understand  that  the  man  you  were  negotiating 
with  was  to  be  given  the  principal  part  of  the  consideration,  and  that  this  man 
was  the  elder  Stanton? 

Answer.  That,  of  course,  was  his  impression.  I  don't  know  that  I  ever  told 
him  so.    That  was  his  impression. 

Question.  You  feigned,  of  course,  to  go  in  there,  negotiate,  then  come  back 
and  report  ? 

Answer.  Yes,  sir. 


116 


REW  YORK  CUSTOM  HOUSE 


By  the  chairman : 

Question.  You  say  there  was  no  negotiation  with  anybody  about  surrendering 
tli is  large  bond  before  it  was  executed? 
Answer.  I  have  no  recollection  of  it. 

Question.  Do  you  recollect  Mr.  Conklin  saying  that  he  could  not  give  any 
bond  as  large  as  that  ($64,000  bond)? 
Answer.  No,  sir. 

Question.  He  swears  that  he  told  you  that  he  could  not  justify  in  as  large  an 
amount  as  that  bond  called  for;  and  he  says  that  there  was  some  talk  betwixt 
you  and  him  upon  that  point  \ 

Answer.  There  must  have  been  some  talk,  from  the  very  fact  that  I  pretended 
to  see  Stanton. 

Question.  It  is  in  proof  before  us  that  there  were  preliminary  negotiations 
about  this  large  bond  between  yourself  and  Mr.  Conklin.  and  the  question  was 
in  Mr.  Conklin' s  mind  how  that  bond  could  pass,  and  after  conversation  be- 
twixt you  and  him,  upon  this  explicit  point,  he  stated  that  he  could  not  swear 
to  so  large  an  amount;  that  he  told  you  that  he  would  have  no  objections  to  go 
upon  the  bond  if  he  were  not  required  to  swear  to  it  ? 

Answer.  I  have  no  recollection  of  that  portion  of  the  conversation.  He  was 
not  willing  to  go  on.  There  was,  no  doubt,  conversation  between  Mr.  Conklin 
and  myself;  what  it  was  I  have  no  knowledge.  I  have  not  the  slightest  doubt 
that  there  was  conversation  between  Mr.  Conklin  and  myself,  and  I  base  it  upon 
the  fact  that  I  intended  to  go  in. 

Question.  If  Mr.  Stanton  would  not  require  him  to  swear  that  he  would  go  on 
the  bond,  could  young  Stanton  have  had  anything  to  do  with  it? 

Answer.  Yes,  sir. 

Question.  You  say,  I  will  fix  that ;  you  go  in.  Now  mark  the  words.  The 
witness  here  swears  that  he  saw  you  leaning  over  Stanton's  desk ;  that  you 
came  out,  came  to  Mr.  Conklin,  and  it  was  all  fixed. 

Answer.  Then  this  gentleman  swears  to  an  untruth,  if  he  tells  you  I  went 
into  the  elder  Stanton's  room.  I  swear,  just  as  positively,  that  I  never  did  any- 
thing of  the  kind. 


Samuel  S.  J.  Frith  sworn  and  examined. 
By  the  chairman  : 

Question.  Please  tell  us  the  nature  of  your  business,  and  how  long  you  have 
been  engaged  in  it. 

Answer.  My  business  is  that  of  importing  and  exporting:  have  been  engaged 
in  it  in  this  city  since  1854;  export  to  the  West  Indies  and  the  Provinces — 
chiefly,  however,  to  Bermuda  and  Turk's  Island. 

Question.  During  the  last  three  years  there  has  been  a  change  in  the  mode  of 
shipment  of  goods  ;  you  are  now  required  to  give  bonds  that  you  were  not  for- 
merly required  to  give  \ 

Answer.  Yres,  sir. 

Question.  Have  you  been  in  the  habit  of  giving  these  bonds  \ 
Answer.  Yes,  sir. 

Question.  You  signed  them  as  principal  ?  Have  you  ever  signed  any  as 
surety  ? 

Answer.  No,  sir.  We  signed  in  the  first  instance  as  principals.  We  never 
signed  as  sureties. 

Question.  How  many  bonds  have  you  given 

Answer.  I  could  not  tell  you  how  many — quite  a  number 


NEW    YORK   CTSTOM  IIOl'SE. 


117 


Question.  Have  you  got  any  of  them  up  ? 

Answer.  I  have  never  had  any  back.  I  have  the  certificates  from  the  consul 
at  Bermuda  showing  the  landing  of  the  goods,  but  none  have  been  cancelled. 

Question.  In  this  export  business  were  you  not  often  delayed  ?  Could  you 
always  get  clearances  as  quick  as  you  wanted  them  1 

Answer.  Always,  by  taking  our  sureties  there  to  sign  the  bonds  at  the  time 
we  were  clearing  the  goods. 

Question.  Have  you  ever  found  it  necessary  to  pay  anything  to  any  of  the 
custom-house  officials  to  facilitate  your  business  ? 

Answer.  We  have  never  paid  one  cent  ourselves,  or  by  any  one  else  for  us. 

Question.  Do  you  do  your  own  business  at  the  custom-house  ? 

Answer.  We  do  our  business  through  a  broker,  but  sign  our  bonds  ourselves. 
When  we  receive  invoices  we  carry  them  to  our  broker.  As  a  general  rule  we 
have  cleared  ourselves  all  the  goods  that  we  have  shipped. 

Question.  With  whom  did  you  negotiate  the  execution  of  the  bonds  and  their 
acceptance  at  the  custom-house  ? 

Answer.  Formerly  there  was  a  man  by  the  name  of  Stanton  there. 

Question.  Did  you  know  him  personally  ? 

Answer.  No,  sir. 

Question.  Did  you  know  his  son  I 

Answer.  No,  sir.  I  know  there  was  a  Mr.  Stanton  there.  I  used  to  have  to 
go  into  his  back  office  to  verify  my  bonds. 

Question.  What  had  you  to  pay  when  you  did  that  ? 

Answer.  I  am  under  the  impression  that  once  or  twice  some  fee  was  taken — 
a  dollar,  perhaps. 

Question.  Don't  you  always  have  to  pay  a  fee  ? 

Answer.  I  have  paid  my  fees  in  the  other  office.  I  am  under  the  impression 
that  there  may  have  been  some  fee. 

Question.  Do  you  recollect  the  amount  you  paid  ] 
Answer.  Probably  fifty  cents  or  a  dollar. 

Question.  Your  name  has  been  given  to  the  committee  as  one  who  knew  (not  that 
you  have  been  concerned  in  it  yourself)  of  parties  who  had  paid  money  to  cus- 
tom-house officials.  Let  me  explain  to  you  that  the  object  is  not  to  find  evi- 
dence against  yourself,  or  any  other  citizen,  but  if  there  is  anything  wrong  in 
the  custom-house,  to  reach  it  and  expose  it.  We  find  that  some  merchants  are 
under  the  impression  that  their  business  will  be  injured,  and  they  will  be  annoyed 
and  inconvenienced,  if  they  should  come  forward  and  testify  to  any  abuses  they 
may  know  of  in  the  custom-house.  I  can  assure  you  if  there  are  abuses,  made 
known  as  prevailing  there,  they  will  be  corrected ;  and  any  employe  of  the  cus- 
tom-house who  should  delay,  hinder,  or  annoy  any  witness  in  the  transaction  of 
his  business  there,  who  should  come  before  us,  would  find  himself  a  head  shorter. 

Answer.  I  don't  know  of  any  one  paying  any  money. 

Question.  To  Mr.  Stanton  or  any  one  else  1 

Answer.  No,  sir. 

Question.  To  obtain  bonds,  to  facilitate  clearances  ? 

Answer.  No,  sir.  I  have  heard  that  such  a  tiling  has  been  done,  but  1  never 
heard  any  party's  name  connected  with  it. 

Question.  Have  you  not  a  suspicion  of  the  men  who  naturally  would  do  that 
very  thing  ? 

Answer.  I  have  not. 

Question.  Have  you  not  any  suspicion  or  belief  yourself  ] 

Answer.  No,  sir.  There  are  a  number  of  men  in  the  same  business  with  my- 
self. I  tell  you,  if  I  even  for  a  moment  could  have  suspected  that  I  could  have 
got  a  bond  in  this  way,  I  would  not  have  done  it. 

Question.  The  question  is  whether  anybody  has  done  it  ? 

Answer.  I  have  no  knowledge  of  it. 


118  NEW  YORK  CUSTOM  HOUSE. 

By  Mr.  Rollins  : 

Question.  What  evidence  did  Mr.' Stanton  require  of  you  as  to  the  sufficiency 
of  the  bond,  when  you  executed  it  ? 

Answer.  I  believe  at  that  time  we  had  to  furnish  one  surety  who  had  real 
estate,  which  is  the  case  now. 

Question.  Did  he  require  you  to  swear  to  the  fact  that  you  yourself  were 
responsible  for  the  amount  I 

Answer.  Yes,  sir. 

Question.  That  you  had  real  estate  I 

Answer.  No,  sir ;  but  required  that  of  the  surety. 

Question.  Do  you  feel  sure  about  that] 

Answer.  No,  sir,  I  am  not  quite  positive  about  that.  It  is  done  now  in  a 
very  different  way  from  what  it  was.  I  am  under  the  impression  that  in  these 
bonds  we  did  not  fill  out  the  residence  of  the  party.    I  may  be  wrong. 

Question.  Do  you  trade  to  Nassau  ? 

Answer.  No,  sir. 

Question.  Has  your  trade  increased  since  the  rebellion  broke  out .; 
Answer.  No,  sir. 

Question.  I  mean  the  trade  to  the  West  Indies  ? 

Answer.  No,  sir.  In  one  sense  it  may  be.  Since  the  war  broke  out  we 
have  a  great  many  vessels  consigned  to  us,  for  which  we  have  to  get  freights. 
In  that  respect  it  has  increased,  because  foreign  vessels  have  had  more  carrying 
trade. 

Question.  I  wanted  to  inquire  whether  the  orders  from  these  ports  have  in- 
creased ? 

Answer.  I  think  not.  Our  trade  is  with  retailers,  and  has  been  from  the 
time  I  first  came  here.  One  man  will  order  twenty  barrels  of  flour,  another  ten, 
another  five,  and  so  on. 

By  the  chairman  : 

Question.  Do  the  custom-house  officers  always  use  you  well  ? 
Answer.  I  have  always  been  treated  very  gentlemanly. 

Question.  Has  there  been  any  attempt  to  extort  money  from  you.,  or  any 
wrong  practiced  upon  you  there  in  any  way  ? 
Answer.  No,  sir. 

Question.  Do  you  know  of  anything  wrong  there  ? 
Answer.  No,  sir. 

Testimony  of  Will  icon  E.  Dane//. 

SS  Pearl  Street,  New  York,  March  17,  1S64. 

William  E.  Darrell  sworn  and  examined. 

By  the  chairman : 

Question.  Please  tell  us  your  business. 

Answer.  Commission  merchant  to  the  West  Indies. 

Question.  Have  you  been  engaged  in  shipping  goods  there  for  the  three  or 
four  past  years  ? 
Answer.  Yes,  sir. 

Question.  And  your  business  has  required  you  to  give  bonds  I 
Answer.  To  Nassau,  it  has. 

Question.  Have  you  taken  up  any  of  these  bonds  ? 
Answer.  I  have  cancelled  all  my  bonds  up  to  July,  1S63. 
Question.  Do  you  do  your  own  business  at  the  custom-house  ? 
Answer.  Yfes,  sir. 


NEW  YORK  CUSTOM  HOUSE. 


119 


Question.  With  whom  did  you  do  business  there  ? 

Answer.  With  the  regular  officers. 

Question.  The  bonds,  I  particularly  allude  to. 

Answer.  The  bonds  I  signed  before  Mr.  Stanton. 

Question.  What  was  the  method  of  cancelling  them  as  pursued  then  '. 

Answer.  They  were  cancelled  on  the  production  of  a  certain  certificate  which 
was  given  by  the  receivers  in  Nassau  before  the  American  consul — a  certificate 
to  the  effect  that  the  goods  were  not  intended  for  the  use  of  the  southern  confed- 
eracy ;  that  was  the  custom  at  that  time ;  they  have  altered  it  since. 

Question.  What  was  the  reason  that  the  bonds  since  July,  1863,  have  not 
been  taken  up  '. 

Answer.  That  is  more  than  I  can  tell  you.  Under  the  new  form,  before  I 
would  shape  anything  I  required  to  know  what  was  going  to  cancel  that  bond, 
and  they  gave  me  a  form  of  a  certificate  which  they  told  me  would  be  all  that 
Avas  sufficient.  I  complied  with  the  regulations,  but  they  refused  to  cancel  the 
bonds — for  what  reason  I  cannot  tell.  In  the  new  form  of  certificate  the  consul 
makes  out  the  same  sort  of  affidavit  that  the  receiver  does.  Under  the  old  ar- 
rangement the  consul's  certificate  was  that  these  parties  had  made  such  and 
such  affidavits  before  him.  Under  the  new  form,  the  consul  certifies  to  his 
knowledge  of  these  facts,  or  his  belief  of  these  facts,  in  addition. 

Question.  Have  any  of  these  bonds  been  surrendered  by  any  other  evidence — 
by  verbal  statements  I 

Answer.  None,  that  I  know  of. 

Question.  Any  upon  which  you  were  surety? 

Answer.  No,  sir;  I  know  nothing  of  the  sort. 

Question.  Do  you  know  of  any  consideration  passing  to  custom-house  officers 
to  facilitate  the  clearance  of  these  goods  ? 
Answer.  I  do  not. 

Question.  Do  you  know  of  any  consideration  passing  to  any  one  connected 
with  Mr.  Stanton's  bureau,  for  the  execution  of  the  bonds  ? 
Answer.  No.  sir. 

Question.  It  has  been  in  evidence  before  the  committee  that  some  persons 
have  received  8100  every  time  they  signed  as  surety  on  a  bond.  Have  you 
any  knowledge  of  that  kind  ? 

Answer.  No,  sir. 

Question.  Never  paid  any  yourself] 
Answer.  Never  to  any  custom-house  officials. 
Question.  To  any  other  persons  I 

Answer.  To  other  persons  I  have  paid  for  becoming  bondsmen. 

Question.  I  would  like  to  ask  what  is  the  usage  that  requires  the  payment 
of  any  money  to  obtain  a  surety  ? 

Answer.  It  is  simply  this :  you  cannot  get  them  unless  you  pay  for  them. 
If  a  man  becomes  liable  on  a  bond,  he  considers  it  worth  a  consideration. 

Question.  How  much  do  you  have  to  pay  ? 

Answer.  Two  and  a  half  per  cent,  to  each  bondsman,  on  the  amount  of  the 
invoice. 

Question.  Is  that  a  legitimate  transaction  ] 

Answer.  I  suppose  it  is.  I  know  I  would  not  bond  for  any  man  without 
consideration.  There  is  a  risk  to  run.  It  is  a  sort  of  insurance.  Not  that  we 
supposed  that  there  was  anything  wrong  in  these  cases,  because  we  took  care, 
before  we  shipped  these  goods,  not  to  send  anything  of  a  suspicious  nature. 

Question.  Do  you  ever  go  as  surety  upon  any  bonds  ? 

Answer.  No,  sir. 

Question.  Have  any  of  your  bonds  ever  been  surrendered  without  the  pro- 
duction of  the  consul's  certificate? 

Answer.  None  have  been  surrendered  without  the  production  of  the  certificate. 


120 


NKW   YOKK  CUSTOM  iiorsi:. 


By  Mr.  Le  Blond: 

Question.  Have  any  of  the  bonds  themselves  been  surrendered  to  you? 

Answer.  Xo,  sir  ;  none  without  the  production  of  the  certificate.  Up  to 
last  July  I  have  had  them  cancelled. 

Question.  Do  they  deliver  them  to  you  after  they  are  cancelled  ! 

Answer.  The  bonds  are  not  delivered,  but  they  are  written  across  the  face, 
"cancelled."  We  see  the  indorsement  made.  Wc  get  a  certificate  of  the  can- 
cellation which  is  indorsed  on  the  bond. 

By  the  chairman  : 

Question.  Do  you  yourself  know  ot  any  consideration  passing  into  any  one's 
hands  in  connexion  with  the  custom-house  for  cancellation  of  bonds  ? 
Answer.  I  do  not. 

Question.  Have  you  reason  to  believe  it  has  been  done  ? 
Answer.  I  know  nothing  more  than  what  rumor  says.    I  have  never  heard 
any  names  mentioned. 

By  Mr.  Rollins  : 

Question.  What  evidence  did  Mr.  Stanton  require  of  you  as  to  the  sufficiency 
of  the  security  upon  the  bond  ? 

Answer.  I  had  to  swear  to  a  real  estate  qualification.  Mr.  Stanton  always 
insisted  upon  that. 

By  Mr.  Le  Blond  : 

Question.  Could  you  do  business  with  young  Stanton  without  the  knowledge 
of  the  elder  Stanton  ? 

Answer.  Young  Stanton  had  the  full  run  of  the  oifice.  He  might  have  very 
easily  taken  every  bond,  if  he  wished  to  do  so,  because  he  was  the  clerk  in 
charge  of  the  bonds. 

Question.  Did  the  bonds  remain  in  his  possession,  or  were  they  in  his  father's 
possession  ? 

Answer.  They  were  in  his  possession  as  clerk.  He  had  charge  of  that  de- 
partment.   The  father  was  in  one  room,  and  the  bonds  were  in  another. 

Question.  You  say  that  you  have  not  had  any  bonds  cancelled  since  July 
last? 

Answer.  Yes,  sir. 

Question.  Who  first  objected  to  the  cancellation  of  the  bonds  ? 
Answer.  Mr.  Hanscom. 

Question.  While  Mr.  Stanton  was  in  office  he  never  made  any  objections  to 
the  cancellation  ? 

Answer.  Xo,  sir.  Since  his  removal,  the  objection  has  been  made  by  Mr. 
Hanscom,  and  I  cannot  get  satisfaction  one  way  or  the  other.  This  morning  I 
met  him  and  produced  my  certificates  and  asked  him  to  compare  them  with  my 
bonds ;  that  he  would  find  proof  that  the  duties  had  been  paid  and  the  requisi- 
tions of  the  bond  complied  with  in  every  particular.  I  said  to  him,  "  Here  is  the 
certificate  from  your  consul."  "  Anybody  can  get  that,"  he  says,  and  he  recom- 
mended me  to  apply  to  the  Secretary  of  the  Treasury  to  have  it  done.  The 
present  form  of  certificate  originated  with  the  Solicitor  of  the  Treasury,  and  the 
form  of  the  cancellation ;  but  before  I  would  shape  anything,  before  I  would  give 
bonds  for  anything,  I  wanted  to  know  what  would  cancel  them,  and  Mr.  Stan- 
ton showed  me  both  of  these  forms,  and  I  have  made  my  shipments  accordingly. 

Question.  Do  they  not  suggest  to  you  what  proofs  are  necessary  ? 

Answer.  They  make  no  suggestions  to  me,  whatever.  I  asked  Mr.  Hanscom 
what  form  of  a  certificate  1  should  get.  He  did  not  suggest  any.  The  only 
suggestion  he  made  to  me  was  to  apply  to  the  Secretary  of  the  Treasury,  and 
notify  him  that  they  refused  to  cancel  the  bonds. 


NEW  YORK  CUSTOM   HOUSE,  121 

Question.  Is  there  any  rumor  or  suspicion  that  the  goods  yon  exported  have 
been  used  for  the  benefit  of  the  southern  confederacy  f 

Answer.  None,  that  I  know  of.  Mine  is  not  the  only  case  of  merchants  in 
New  York  who  have  bonds  in  the  same  position,  and  who  have  shipped  to 
Nassau. 

Question.  Were  these  shipments  upon  which  bonds  were  given,  and  which 
are  not  cancelled,  all  shipments  to  Bermuda  and  Nassau  ? 
Answer.  All  made  to  Nassau. 

Question.  Have  you  shipped  to  any  other  ports  besides  Bermuda  and  Nassau  ? 
Answer.  Yes,  sir.    To  several  of  the  West  India  islands. 
Question.  Have  you  any  bonds  which  they  have  failed  to  cancel,  where  you 
made  shipments  to  other  ports  ? 

Answer.  They  require  none  to  other  ports. 

By  Mr.  Bollins  : 

Question.  How  long  have  you  been  engaged  in  this  Nassau  trade  ? 
Answer.  Since  1858. 

Question.  Has  it  increased  rapidly  since  the  rebellion  broke  out? 

Answer.  I  suppose  it  has  increased,  perhaps,  50  per  cent. — doubled,  probably. 

Question.  How  do  you  account  for  that  increase  ? 

Answer.  Increased  consumption  from  people  there  now — there  are  more  con- 
sumers there. 

Question.  Has  the  number  of  your  correspondents  increased  ? 
Answer.  Y"es,  sir ;  my  business  has  been  on  the  increase  all  the  while. 
Question.  You  ship  principally  provisions  ? 

Answer.  Scarcely  anything  else.  I  made  it  a  point  not  to  ship  anything  that 
was  at  all  likely  to  go  out  of  Nassau — anything  which  I  considered  there  was 
the  least  risk  in  shipping. 

By  Mr.  Le  Blond  : 

Question.  Do  you  know  what  has  caused  this  increase  of  population  at  Nassau  ? 
Answer.  The  influx  of  strangers  from  other  parts. 
Question.  Have  you  been  at  Nassau  since  the  rebellion  commenced  ? 
Answer.  No,  sir. 

Question.  Have  you  had  any  means  of  knowing  where  this  population  comes 
from — from  what  particular  locality'? 
Answer.  I  have  not. 

By  Mr.  Rollins  : 

Question.  Have  not  the  Confederate  States  sent  agents  there  for  the  purchase 
of  provisions  and  munitions  of  war  ? 
Answer.  I  have  heard  so. 

Question.  Do  you  know  who  those  agents  are  ? 
Answer.  No,  sir;  I  have  heard  a  name  mentioned. 
Question.  What  name  ? 
Answer.  Lafitte. 

By  Mr.  Le  Blond  : 

Question.  You  have  already  answered  that  your  correspondents  have  increased 
since  the  rebellion. 
Answer.  Yes,  sir. 

Question.  Do  you  know  the  character  of  your  new  correspondents — when 
they  are  from? 

Answer.  They  are  all  Nassau  people,  I  believe. 
Question.  Of  how  long  standing  ? 
Answer.  Natives — born  there. 


122 


NEW  YORK  CUSTOM  HOUSE. 


By  Mr.  Rollins  : 

Question.  These  parties  would  have  no  scruple  about  selling  provisions  to  feed 
the  confederate  army  if  they  could  make  a  good  profit  by  it.  What  reason  have 
you  to  believe  that  they  do  not  1 

Answer.  The  only  reason  I  have  to  suppose  that  they  have  not  is,  that  they 
have  kept  good  faith  with  me  ;  if  I  found  out  that  they  did  not.  I  would  have 
nothing  to  do  with  them 

Question.  They  are  in  no  way  responsible  to  you  ? 

Answer.  Yes,  sir. 

Question.  In  what  way  ? 

Answer.  They  must  hold  me  harmless  for  any  improper  act  they  may  do 
under  these  bonds.  Unless  I  knew  the  man,  I  would  not  trust  him.  I  have 
refused  many  a  correspondent  that  I  thought  I  could  not  rely  upon. 

Testimony/  of  Francis  T.  Montell. 

New  York,  March  17,  1S64. 
Francis  T.  Montell  sworn  and  examined,  of  the  firm  of  Montell  &  Bartar,  168 
Pearl  street. 

By  the  chairman : 

Question.  Will  you  please  inform  us  in  what  business  you  are  engaged,  and 
for  how  long  you  have  been  so  engaged? 

Answer.  Have  been  about  six  years  in  the  shipping  and  commission  business 
here.  Commenced  doing  business  in  Baltimore  in  1S33,  and  came  on  here.  My 
business  is  that  of  importing  and  exporting ;  recently,  however,  I  have  not  been 
doing  any  importing  for  myself ;  goods  have  come  consigned  to  us.  Once  I  did 
considerable  business  myself  with  Cuba,  Havana,  and  Matanzas,  but  of  late  years 
I  have  confined  myself  exclusively  to  commission  business. 

Question.  Was  your  business  with  these  islands  importing  from  there  ? 

Answer.  Exporting  considerably,  and  importing  some  little. 

Question.  Have  you  lately  been  in  the  habit  of  exporting  goods  to  the 
Bermudas  ? 

Answer.  On  account  of  orders  received  from  there  Ave  have — to  Nassau  and 
New  Providence. 

Question.  Has  this  business  required  you  to  give  bonds  ? 
Answer.  Yes,  sir. 

Question.  Who  did  your  business  at  the  custom-house  ? 
Answer.  I  did  it  myself. 

Question.  "Who  had  charge  of  the  bond  department  when  you  were  doing 
business  at  the  custom-house  ? 

Answer.  I  commenced  giving  bonds  to  Mr.  Stanton — afterwards  to  Mr. 
Runkle. 

Question.  On  the  giving  up  of  these  bonds  there  were  certain  conditions 
required,  I  suppose,  to  enable  you  to  get  them  up  again  I 

Answer.  Yes,  sir  ;  we  were  to  furnish,  as  I  understood  it,  certificates  from  the 
consul  that  these  goods  were  landed  in  Nassau,  and  that  they  had  not  in  any 
way  or  manner  been  used  to  benefit  those  in  rebellion  against  the  government 
of  the  United  States. 

Question.  Have  you  any  bonds  in  the  custom-house  now  given  for  that  pur- 
pose which  you  have  not  taken  up  ? 

Answer.  A  large  number;  they  were  cancelled  on  the  consul's  certificate  up 
to  a  certain  time,  and  then  they  stopped,  and  said  those  certificates  were  not 
satisfactory,  because  they  were  based  solely  upon  the  affidavits  of  the  consignees, 


NEW  YORK  CUSTOM  HOUSE. 


123 


and  the  consul  did  not  certify  from  his  own  knowledge  of  the  character  of  the 
consignees,  nor  of  the  disposition  of  the  property  consigned. 

Question.  Who  took  objection  to  the  bond-  \ 

Answer.  Mr.  Stanton. 

Question.  How  did  you  then  proceed? 

Answer.  We  wrote  to  Washington  and  asked  them  to  allow  as  t"  cancel  our 
bonds,  and  they  wrote  to  Mr.  Stanton  about  them.  Just  about  that  time  Mr. 
Stanton  got  into  disrepute  in  some  way,  and  went  from  the  bond  department, 
and  Mr.  Hansconi  requested  us  to  give  him  information  in  what  way  our  certifi- 
cates were  informal,  and  we  then  furnished  him  with  that  evidence,  and  wrote 
on  again  to  Washington. 

Question.  While  Mr.  Stanton  was  administering  the  bond  bureau,  were  there 
any  bonds  of  yours  given  up,  or,  rather,  cancelled,  in  any  other  manner  than  you 
have  spoken  of? 

Answer.  We  never  get  the  bonds  from  the  custom-house;  our  bonds  that  are 
cancelled  are  all  left  there ;  he  merely  wrote  across  them  "  cancelled."  keeping 
the  certificate  as  his  authority. 

Question.  You  never  had  any  knowledge  of  any  bonds  being  given  up  in  any 
other  manner? 

Answer.  No,  sir. 

Question.  Did  you  go  as  surety  upon  any  bonds  \ 

Answer.  We  would  not  sign  any  bonds  for  anybody  but  ourselves;  we  have 
been  doing  business  with  Nassau  for  thirty-odd  years. 

Question.  Were  those  bonds  cancelled,  any  of  them,  on  any  other  considera- 
tion, to  your  knowledge  or  belief,  than  the  production  of  the  consul's  certificate  \ 

Answer.  Not  that  I  know  of.  I  never  in  my  life  offered  a  bribe  to  anybody, 
because,  if  I  did,  I  would  consider  that  I  would  be  just  as  bad  as  the  man  who 
received  it. 

Question.  To  your  knowledge  or  belief  I  ask  you. 
Answer.  Not  to  my  knowledge. 
Question.  To  your  belief  I  will  ask  you. 

Answer.  We  had  plenty  of  reports  that  Mr.  Stanton  has  received  bribes  ;  I 
have  no  more  knowledge  about  it  than  that. 
Question.  Have  you  any  belief  about  it  \ 

Answer.  No,  sir;  I  should  be  very  sorry  to  say  that  I  believed  Mr.  Stanton 
received  bribes,  although  he  may  have  done  so.  I  should  be  sorry  to  think  so 
of  any  man. 

Question.  Have  you  any  suspicions  in  your  own  mind,  from  any  transactions 
that  you  have  seen,  or  that  have  come  to  your  knowledge,  that  money  was  used 
to  obtain  the  cancellation  of  bonds  ?  Allow  me  to  say  that  the  evidence  is 
before  us  that  this  has  been  the  case. 

Answer.  A  great  many  people  say  so,  but  I  don't  know  anything  about  it 
myself. 

Question.  A  gentleman  has  given  us  your  name  as  being  able  to  specify  in- 
stances where  this  has  been  done. 

Answer.  That  gentleman  has  done  wrong. 

Question.  Do  you  know  of  any  cases  where  money  has  been  •taken  ? 
Answer.  I  don't  know  of  a  dollar. 

Question.  I  will  vary  the  question.  Do  you  know  of  any  money  being  used 
to  facilitate  the  clearance  of  vessels  going  to  suspected  porta  \ 

Answer.  I  could  not  say  that  I  could  give  you  an  instance. 

Question.  Did  you  ever  hear  any  man  say  that  he  had  facilities  for  getting 
things  through  the  custom-house  in  a  way  that  was  not  legitimate,  and  contrary 
to  the  usual,  honorable,  and  proper  mode  ? 

Answer.  No,  sir. 

Question.  Do  you  believe  that  it  has  been  done  1 


124 


NEW   YORK  CUSTOM  HOUSE. 


Answer,  I  would  suppose  that  it  might  be  done  from  what  people  say,  but  it 
may  not  be  so. 

Question.  The  committee  have  been  told,  before  they  undertook  to  investigate 
this  matter,  that  the  merchants  when  called  upon  would  evade  answering  ques- 
tions put  in  reference  to  these  matters  by  professing  ignorance,  or  that  they  could 
not  specify  the  cases,  when  it  is  just  as  well  known  that  they  could  do  it  if  they 
chose,  and  that  they  are  unwilling  to  have  their  names  connected  with  the 
investigation. 

Answer.  1  assure  you  if  I  could  in  any  shape  or  manner  have  known  that  a 
man  was  doing  wrong  I  would  tell  you  without  the  least  hesitation  ;  I  should 
consider  it  my  duty  to  do  so. 

Question.  Do  you  know  of  a  man  or  a  firm  who  you  think  could  give  us  this 
information  I 

Answer.  No,  sir. 

By  Mr.  Rollins : 

Question.  Have  your  shipments  to  Nassau  largely  increased  since  the  rebellion? 
Answer.  They  have. 

Question.  Has  the  number  of  your  correspondents  increased  there  ? 
Answer.  Yes,  sir,  but  of  no  persons  except  those  belonging  to  the  island. 
Question.  What  per-centage  has  your  trade  increased  to  Nassau  since  the 
rebellion  ? 

Answer.  1  would  suppose  double  what  it  used  to  be. 

Question.  What  number  of  bonds  have  you  given  to  the  custom-house,  and 
what  number  have  been  cancelled  ( 

Answer.  We  have  cancelled  thirty  or  forty;  there  are  one  hundred  yet  to 
cancel. 

Question.  Have  the  custom-house  authorities  delivered  any  of  the  bonds  to 
you? 

Answer.  Not  one. 

Question.  On  what  evidence  did  you  cancel  them  ? 
Answer.  On  the  consul's  certificate. 

Question.  Have  you  ever  known  of  an  instance  where  a  bond  has  been 
cancelled  by  a  verbal  statement  ? 
Answer.  No,  sir. 

Testimony  of  Jose  pit  Eneas. 

Fort  Lafavettu,  March  19,  1SG4. 

Joseph  Eneas  sworn  and  examined. 

By  the  chairman : 
Question.  Are  you  a  resident  of  New  York  ? 
Answer.  I  reside  in  Brooklyn. 

Question.  How  long  have  you  done  business  in  New  York  ? 

Answer.  Nearly  12  years. 

Question.  Exporting  and  importing  goods  ? 

Answer.  Yes,#sir. 

Question.  Where  have  you  been  exporting  goods  to  I 

Answer.  To  Nassau  and  Demarara. 

Question.  How  long  have  you  been  in  that  business  \ 

Answer.  Ever  since  I  have  been  here.  I  started  in  that  business,  and  have 
been  in  it  ever  since. 

Question.  How  long  since  you  were  required  in  shipping  goods  to  give  bonds? 
Answer.  I  could  not  remember. 
Question.  About  how  long  ? 

Answer.  I  don't  know  whether  it  was  the  summer  of  1SG1  or  1862. 


NEW  YORK  CUSTOM  HOtJSB.  125 

Question.  What  is  the  character  of  the  goods  you  have  generally  shipped, 
running  back  before  the  war  commenced? 

Answer.  We  generally  furnished  goods  for  country  stores — a  sort  of  mixed 
business.  A  man  out  there  sells  butter,  cheese,  lard,  as  well  as  dry  goods  and 
hardware. 

Question.  How  did  the  war  affect  the  orders  you  received  from  there  /  Did  it 
increase  them  ? 

Answer.  It  increased  them  some,  for  the  very  reason  that  they  used  to  do 
considerable  business  with  Philadelphia  and  Baltimore,  which  they  do  not  now, 
and  they  used  to  do  business  witli  Savannah,  Charleston,  and  Wilmington, 
and  as  far  down  as  New  Orleans.  I  do  not  think  that  a  vessel  has  gone  from 
Baltimore  since  they  had  the  muss  with  the  soldiers  going  through. 

Question.  In  the  shipment  of  goods  you  were  required  to  give  bonds  ? 

Answer.  Yes,  sir. 

Question.  Who  had  charge  of  the  determination  of  the  character  and  suffi- 
ciency of  the  bonds  in  the  custom-house  when  you  were  doing  business  there  ? 
Answer.  Mr.  Stanton,  I  believe. 

Question.  Did  you  do  your  business  directly  with  him,  or  through  a  clerk  or 
clerks  ? 

Answer.  I  used  to  go  in  there  to  sign  my  bonds  ;  my  broker  used  to  make; 
out  my  bonds. 

Question.  Did  you  ever  have  any  difficulty  in  getting  sureties  ? 
Answer.  No,  sir;  I  do  not  believe  I  ever  did. 

Question.  Was  there  ever  any  objection  made  to  the  sureties  you  offered  ? 
Answer.  Yes,  sir;  in  one  or  two  cases. 
Question.  What  were  those  objections'? 

Answer.  I  think  the  objection  was  because  they  could  not  swear  that  they 
were  worth  enough. 

Question.  What  was  done  then 
Answer.  I  had  to  get  somebody  else. 

Question.  Was  there  any  delay  in  getting  a  clearance  of  the  goods  when  you 
did  give  the  bonds  ? 

Answer.  I  could  not  get  a  clearance  until  the  bonds  were  signed  and  checked. 
1  found  no  difficulty  in  getting  them  through  at  once. 

Question.  Did  you  have  to  pay  anything  to  any  individuals  to  act  as  sureties  ! 

Answer.  I  never  paid  a  cent  in  my  life  for  that  purpose. 

Question.  Did  your  broker  ? 

Answer.  No,  sir. 

Question.  It  is  stated  that  it  is  customary,  on  the  part  of  several  gentlemen, 
to  pay  from  one  to  two  and  a  half  per  cent,  on  the  invoice  to  the  surety? 
Answer.  I  never  had  to  pay  anything. 

Question.  Did  you  ever  pay  anything,  directly  or  indirectly,  to  get  a  bond 
executed  ? 

Answer.  No,  sir;  not  a  cent. 

Question.  What  has  become  of  your  bonds  that  you  gave  all  along  ? 
Answer.  They  are  in  the  custom-house,  I  presume  ? 
Question.  Are  they  cancelled  ? 

Answer.  A  part  of  them  are,  and  a  part  of  them  are  not. 
Question.  How  ? 

Answer.  By  the  consul's  certificate;  where  we  sent  to  islands  when1  there  is 
no  consul,  we  had  the  magistrate's  certificate,  or  the  notary  public's. 

Question.  What  did  you  pay  when  the  bonds  were  signed  ? 

Answer.  I  don't  know  as  regards  that:  my  broker  always  paid  my  fees  to 
the  custom-house;  I  paid  him  two  dollars  and  a  quarter  for  executing  a  bond  ; 
that  was  his  regular  fee. 


NEW  YORK  CUSTOM  HOUSE. 


Question.  Have  you  ever  got  up  any  of  these  bonds  since  1S61  ?  Have  yon 
.  had  them  returned  to  you  when  they  were  cancelled  ? 

Answer.  They  never  returned  them  to  rue  when  they  were.  When  I  carried 
the  consul's  certificate  they  used  to  look  them  up  to  see  if  they  corresponded 
with  the  certificate. 

Question.  It  is  stated  in  proof  that  some  bonds  have  been  cancelled  by  cat- 
ting out  the  consul's  certificate  ;  have  yours  been  treated  in  that  way  I 
Answer   I  have  had  nothing  of  that  kind. 

Question.  It  is  stated,  likewise,  that  several  of  these  bonds  have  been  ab- 
stracted or  withdrawn  from  the  custody  of  the  custom-house,  and  that  various 
sums  of  money  were  paid,  sometimes  as  low  as  $25,  for  doing  that;  have  you 
had  any  of  your  bonds  returned  in  that  way  ? 

Answer.  I  have  never  had  any  bonds  returned  since  I  left  them. 

Question.  Do  you  know  whethei  your  broker  has  I 

Answer.  My  broker  has  never  paid  a  cent  for  me  to  anybody  to  do  anything 
of  the  kind. 

Question.  Did  you  or  your  broker  ever  pay  anything  to  the  inspectors'  aids 
or  the  special  deputies  to  facilitate  or  hurry  along  goods  and  get  them  passed  ? 
Answer.  Never;  I  never  paid  anything,'  I  don't  know  that  my  broker  has; 
.  I  never  paid  him  anything  but  his  regular  fees. 
Question.  You  own  some  vessels  in  the  trade  ? 
Answer.  I  own  a  part  of  some. 

Question.  Did  you  have  an  ownership  in  the  Indus  ? 
Answer.  Yes,  sir. 

Question.  Did  you  always  know  what  cargo  she  took  out  ? 
Answer.  She  took  freight  generally,  for  people  who  shipped  goods. 
Question.  Whether  they  were  your  own  or  somebody  else's  ? 
Answ  er.  Everybody  had  the  privilege  of  shipping  in  her ;  she  was  always 
put  up  on  freight. 

Question.  Were  there  any  restrictions  by  you  to  the  captain  as  to  the  class 
or  character  of  goods  that  came  on  board,  contraband  or  otherwise  ? 

Answer.  We  didn't  know  what  a  man  shipped  when  he  had  packed  his  goods. 

Question.  Were  any  directions  given  by  you  to  the  officers  as  to  what  goods 
should  be  received  ? 

Answer.  No,  sir;  to  be  candid  with  you,  I  don't  know  what  is  contraband  in 
New  York.  We  made  a  rule  that  we  would  not  sign  bills  of  lading  until  we 
found  out  that  they  had  given  bonds  for  the  goods. 

Question.  Do  you  recollect  the  trip  of  the  Indus  when  the  captain  died  I 

Answer.  lie  died  out  at  sea;  I  think  it  was  off  Cape  Ilenlopen. 

Question.  Do  you  recollect  the  fact  that  the  vessel  was  loaded  and  cleared 
about  the  last  days  .if  June  or  the  first  days  of  July,  1SG3  ? 

Answer.  No,  sir;  I  could  not  tell  whether  she  went  that  time;  the  captain 
died  the  last  voyage  ;  it  was  in  the  fall  of  the  year — October  or  November ;  I 
know  it  was  cool  weather. 

Question.  The  object  is  not  to  find  evidence  with  reference  to  yourself,  but 
here  is  the  point  to  which  I  want  to  call  your  attention  :  In  June  or  July,  1863, 
the  Indus,  it  has  been  .-worn  to  before  us,  late  one  afternoon  was  hauled  out 
into  the  stream,  and  did  not  sail  until  the  next  morning  ;  that  a  large,  heavy 
box  or  trunk — so  heavy  that  it  required  several  men  to  handle  it — was  put  on 
board;  that  also  two  or  three  smaller  packages,  evidently  part  and  parcel  ol 
that  shipment,  were  taken  on  board;  and  it  is  also  in  evidence  that  a  custom- 
house employe,  or  aid,  whose  business  it  was  to  look  after  the  thing  for  the 
inducement  of  $250,  turned  his  back  and  allowed  this  trunk  or  box  to  go  on 
board  ;  and  it  is  reported  that  after  this  vesseimade  this  trip,  that  this  trunk  or 
box  contained  one  of  the  torpedoes  which  was  placed  in  one  of  the  harbors  by 
the  rebels. 


NEW  YORK  CUSTOM  HOUSE. 


127 


Answer.  I  don't  know  a  word  about  it ;  I  never  heard  of  such  a  thing.  The 
other  committee  asked  me  about  submarine  batteries ;  I  had  never  seen  one  in 
my  Life.  I  don't  know  who  the  officer  was,  nor  anything  about  the  case.  IT  it 
was  done,  it  was  unknown  to  me;  if  I  knew,  I  would  tell  in  a  moment.  I  am 
not  very  friendly  to  some  of  the  folks  in  tie-  custom-house. 

Question.  Do  you  know  who  was  mate  of  the  Indus  at  that  time  j 

Answer.  I  do  not. 

Question.  Would  the  books  of  the  ship  show  what  was  put  on  board  I 
Answer.  We  do  not  generally  have  the  books;  they  generally  carry  the 
cargo  book  every  trip  ;  it  is  a  little  book — a  pamphlet. 
Question.  Is  that  vessel  in  port  now? 
Answer.  Yes,  sir. 
Question.  Who  is  the  captain  ? 
Answer.  I  don't  know  his  name. 

Question.  What  did  they  send  you  down  here  for  (Fort  Lafayette  ?) 

Answer.  1  don't  know ;  I  believe  it  is  through  the  ill  will  of  somebody  in 
the  custom-house ;  I  believe  I  was  only  sent  down  here  to  effect  some  litigation 
going  on  in  court. 

Question.  Who  do  you  think  was  instrumental  in  getting  you  here? 

Answer.  I  don't  know  for  certain;  I  only  suspect  the  parties  who  sent  me 
here;  I  don't  think  anything  of  that  kind  ever  went  in  the  vessel. 

Question.  You  said  that  you  were  not  very  friendly  to  some  of  the  custom- 
house officers:  do  you  know  of  any  impropriety  or  abuses  in  the  custom-house? 

Answer.  I  do  not  ;  I  never  paid  a  cent  to  any  one  in  the  custom-house  in  my 
life;  nothing  but  my  regular  fees. 

Question.  Did  you  have  anything  to  do  with  Mr.  Palmer] 

Answer.  No,  sir;  I  merely  knew  him  by  sight ;  I  don't  know  that  I  ever 
spoke  to  him  before  I  wras  down  here. 

Question.  Do  you  know  what  became  of  your  goods  that  yon  carried  to  the 
Bermudas  ? 

Answer.  I  shipped  to  Nassau;  we  had  certificates  that  they  were  used  out 
there. 

Question.  How  long  have  you  been  here  (Fort  Lafayette  ?) 
Answer.  Ever  since  the  1st  of  January. 

Question.  Did  you  ever  run  any  other  vessel  than  the  Indus  that  was  in 
this  trade  I 

Answer.  We  had  several  vessels  that  used  to  go  there  at  different  times,  but 
none  that  I  owned  the  whole  of. 

Question.  Is  your  business  going  on  in  New  York  ? 

Answer.  Not  that  I  know  of ;  they  have  got  my  books,  and  have  had  them 
ever  since  January. 

Question.  Have  you  been  before  the  military  commission  ? 

Answer.  Yes,  sir ;  I  know  what  they  tell  me  there  ;  they  spoke  to  me  about 
shipping  1,500  pairs  of"  blankets;  I  never  shipped  more  than  two  blankets. 

Question.  Did  you  ever  take  any  English  goods  in  original  packages  thai 
were  not  opened  in  New  York  ? 

Answer.  That  I  don't  know  ;  I  could  not  tell. 

Question.  Did  you  ever  carry  any  hay  '. 

Answer.  I  don't  know  that  I  ever  carried  any  hay,  except  for  Mr.  Miller,  the 
man  who  had  a  contract  for  cattle  out  at  Nassau. 
Question.  With  whom? 

Answer.  The  British  government  ;  he  had  a  contract  to  furnish  the  troops 
with  beef,  and  I  carried  hay  for  him. 
Question.  Where  was  it  put  up  I 

Answer.  I  believe  he  used  to  have  some  of  it  pressed  at  Dillon's,  in  Burling 
slip  ;  as  a  general  thing  he  used  to  ship  it  along  with  the  cattle. 


12S  NEW  %  YORK  CUSTOM  HOUSE. 

Question.  Did  you  ever  take  any  telegraph  wire/ 

Answer.  I  believe  there  was  a  piece  went  out  in  one  of  these  vessels. 

Question.  Who  shipped  that  ? 

Answer.  The  captain. 

Question.  You  mean  by  that  coils? 

Answer.  About  one  coil. 

Question.  Do  you  know  anything  about  any  arms  going? 
Answer.  No,  sir;  nothing  of  that  kind. 
Question.  Any  sabres  ? 
Answer.  No,  sir. 

Question.  Horseshoes  or  army  shoes? 

Answer.  No,  sir;  I  have  never  bought  an  arm  since  I  have  been  in  this 
country,  or  a  pound  of  powder ;  I  never  carried  any  that  I  know  of. 

Question.  Some  one  has  stated  that  there  were  105  bales  of  blankets,  and 
that  there  were  sabres  in  the  hay .' 

Answer.  I  never  shipped  over  two  pairs  of  blankets  in  my  life,  to  my  knowl- 
edge ;  I  don't  know  that  I  ever  bought  more  than  a  pair. 

Question.  Do  you  know  whether  there  were  any  in  the  bundles  of  hay? 

Answer.  I  don't  believe  there  was  anything  in  the  bundles  of  hay. 

Question.  Did  you  hear  afterwards  that  there  was  anything  concealed  in  the 
hay  ? 

Answer.  No,  sir;  because  when  Mr.  Miller  put  hay  aboard,  the  cattle  used 
to  eat  all  they  wanted  to  going  out,  and  the  rest  was  left  for  the  cattle  until 
they  killed  them. 

Question.  You  are  not  aware  of  having  shipped  any  contraband  goods.'' 
Answer.  No,  sir  :  not  that  T  know  of. 

By  Mr.  Le  Blond : 

Question.  Then  you  have  no  knowledge  of  having  shipped  any  upon  your 
own  account,  or  upon  the  account  of  any  person  else,  upon  your  vessels? 

Answer.  No,  sir;  I  never  allowed  goods  to  go  unless  people  got  their  clear- 
ances ;  I  don't  know  what  was  in  their  cases  ;  I  took  it  for  granted  that  they 
were  their  own  goods;  1  didn't  know  but  that  everything  was  going  on  regular. 

By  the  chairman  : 

Question.  Did  you  ever  hear  anybody  say  that  they  had  facilities  for  get- 
ting goods  through  the  custom-house  easier  than  other  people? 
Answer.  Not  to  my  knowledge. 

Question.  Did  you  ever  hear  any  one  say  that  they  got  the  inspectors  or 
special  aids  to  turn  their  backs  and  allow  things  to  go  on  board  by  "  greasing 
their  fingers,"  or  by  paying  them  anything? 

Answer.  I  never  did. 

Question.  Then,  I  understand  you  to  say  that  you  never  had  any  difficulty 
in  getting  your  goods  along? 

Answer.  I  never  had  my  sureties  refused  more  than  once  or  twice;  Mr. 
Bacon  has  gone  my  surety  several  times,  and  Howell  &  Rockwell,  who  keep  a 
provision  house;  we  had  different  parties;  I  could  not  tell  who  they  were,  for 
I  do  not  remember. 

By  Mr.  Rollins  : 

Question.  How  many  bonds  have  you  given,  and  for  what  amount? 
Answer.  I  don't  know. 
Question.  About  how  many 
Answer.  I  could  not  tell  you. 

Question.  What  is  the  amount  of  your  business  to  Nassau  since  the  rebellion 
commenced  ? 


NEW  YORK  CUSTOM  HOUSE. 


129 


Answer.  That  I  could  not  tell  you. 
Question.  About  how  much  ? 

Answer.  I  could  not  tell  within  50  or  100,000  dollars  of  it. 
Question.  Don't  you  attend  to  your  business  yourself? 
Answer.  Generally. 

Question.  Do  you  mean  to  be  understood  that  your  business  with  Nassau, 
since  the  rebellion  commenced,  has  been  so  large  that  you  cannot  tell  within  50 
or  100,000  dollars  what  it  amounts  to,  with  all  your  personal  attention  to  it? 

Answer.  I  do  not  think  I  attended  to  it  altogether;  I  could  not  tell  what  my 
business  with  Nassau  was;  it  would  be  only  mere  guess-work;  I  never  looked 
over  it  to  see  how  it  was. 

Question.  Don't  you  know  what  your  business  amounts  to  from  year  to  year 
with  Nassau? 

Answer.  No,  sir;  I  never  looked  to  see  what  it  amounted  to  altogether  in 
one  year. 

Question.  Tell,  as  near  as  you  can,  how  much  your  business  with  Nassau 
was  for  the  year  closing  December,  1863. 
Answer.  1  could  not  tell  you. 
Question.  Tell  me  as  near  as  you  can. 
Answer.  I  don't  know  how  to  form  an  idea  of  it. 
Question.  Was  it  $100,000  ? 
Answer.  More  than  that. 
Question.  $500,000? 
Answer.  I  don't  think  it  was. 
Question.  How  much  was  it  before  the  rebellion  ? 
Answer.  I  could  not  tell. 
Question.  Was  it  $'200,000  per  year  1 
Answer.  I  should  think  it  was. 

Question.  Have  not  their  orders  largely  increased  since  the  rebellion  ? 
Answer.  Some  of  them  have. 

Question.  Has  not  your  business  with  Nassau  more  than  doubled  since  the 
rebellion  ? 

Answer.  I  don't  think  it  has  ;  I  could  not  tell  you. 

Question.  Do  you  mean  to  say  that  your  business  with  Nassau  may  be  about 
half  a  million  annually,  and  that  before  the  rebellion  it  was-  anything  like  that  2 

Answer.  I  had  more  customers  in  Nassau  before  the  rebellion  than  I  have 
got  now,  because  a  great  many  of  my  customers  have  left  me  and  gone  to  other 
houses. 

Question.  Still  the  amount  of  your  sales  has  more  than  doubled  ? 

Answer.  I  do  not  think  it  has. 

Question.  Do  you  say  that  it  has  not  doubled  ? 

Answer.  I  do  not  think  so ;  I  never  looked  to  see. 

Question.  You  don't  know  much  about  your  busim jss  1 

Answer.  Yes,  sir ;  I  never  looked  to  see  what  amount  of  business  I  did  with 
Nassau  was,  because  we  had  business  with  the  islands  around  the  Bahamas. 

Question.  What  has  been  the  character  of  the  goods  ordered  since  the  rebel- 
lion, of  which  there  has  been  this  large  increase  ? 

Answer.  The  orders  are  general — the  same  as  we  always  used  to  have  :  we 
are  probably  sending  more  flour  than  we  used  to  do,  because  they  used  to  get 
that  from  other  places.  Philadelphia  used  to  trade  a  good  deal  with  Nassau,  and 
I  don't  suppose  that  two  vessels  have  gone  from  there  for  Nassau  since  the  re- 
bellion, as  two  or  three  houses  who  used  to  do  that  business  have  failed. 

Question.  Don't  the  confederate  government  have  agents  in  Nassau  who  order 
goods  from  New  Y'ork  ? 

Answer.  Not  from  me ;  everybody  I  did  business  with  in  Nassau  belongs 
H.  Rep.  Com.  111—9 


130 


NEW  YORK  CUSTOM  HOUSE. 


there  and  the  islands  around  there ;  the  goods  that  I  have  sent  never  went  into 
the  rebellion  to  my  knowledge. 

Question.  Have  some  of  your  vessels  been  seized  by  the  government 

Answer.  A  steamer  was  stopped  here;  that  is  the  rejection  1  spoke  of;  her 
name  is  the  "  Jose. "  Everything  on  board  of  her  was  cleared  regularly  ;  the 
principal  part  of  her  cargo  was  potatoes,  apples  and  cabbages. 

Question.  It  is  very  easy,  is  it  not,  for  goods  to  be  shipped  to  Mr.  Jones  in 
Nassau  ;  Mr.  Jones  might  sell  them  to  Mr.  Smith,  and  Mr.  Smith  might  sell  them 
to  an  agent  of  the  rebels  ? 

Answer.  It  might  be  done. 

Question.  It  is  not  a  very  easy  thing  to  place  goods  on  board  of  these  vessels, 
give  a  bond,  have  the  bond  cancelled  by  the  certificate  as  you  suggest,  and  still 
have  these  goods  go  directly  to  aid  the  rebellion,  by  making  these  sales  that  I 
suggested  ? 

Answer.  They  take  their  oath  that  the  goods  are  not  going  to  be  sold  for  that 
purpose. 

Question.  Have  you  any  doubt  that  it  might  be  done  in  the  way  I  have  sug- 
gested? 

Answer.  I  have  not  been  in  Nassau  since  the  war ;  I  don't  know. 

By  Mr.  Le  Blond  : 
Question.  You  claim  to  be  a  British  subject? 

Answer.  Yes,  sir ;  I  have  got  a  wife  that  belongs  to  Connecticut ;  I  have  no 
desire  to  see  this  country  separated ;  I  expect  my  children  to  be  educated  here 
and  to  be  citizens  of  the  United  States. 

Question.  Are  you  naturalized  ? 

Answer.  No,  sir. 

Question.  Did  you  ever  make  application  to  be  ? 

Answer.  No,  sir ;  when  I  came  here  I  owned  some  property,  and  I  owned  a 
British  vessel,  and  I  didn't  know  whether  I  would  stay  here  or  not. 
Question.  Did  you  ever  exercise  the  right  of  suffrage  in  this  country  I 
Answer.  No,  sir. 

Question.  Do  you  know  anybody  who  has  been  concerned  in  shipping  goods 
to  the  rebels  from  New  York  ? 

Answer.  There  are, plenty  of  people  in  New  York  who  never  shipped  any- 
thing to  Nassau  until  this  rebellion,  and  I  do  not  see  why  I  should  be  troubled 
when  such  people  are  not  troubled.  The  committee  told  me  they  had  a  report 
where  I  shipped  1,500  pair  of  blankets. 

Question.  You  might  have  received  them  from  somebody  else  ? 

Answer.  I  never  received  them,  nor  knew  anything  about  it. 

By  the  chairman  : 

Question.  I  understand  you  to  say  that  the  cargo  of  the  Jose  was  simply 
apples  and  potatoes  ? 

Answer.  The  bulk  of  it. 

Question.  What  was  the  rest  of  it  ? 

Answer.  She  had  twenty-two  cases  of  gin,  a  dozen  each  ;  a  few  boxes  of  claret; 
two  or  three  boxes  of  wine ;  a  box  of  bitters,  and  a  wagon. 
Question.  Who  owned  the  wagon  ? 

Answer.  I  owned  it  in  a  measure.  There  was  a  party  who  asked  me  to  pay 
for  it.  1  paid  the  money  for  it,  I  was  to  deliver  it  in  Nassau,  and  they  were 
to  pay  for  it.    The  party  was  Wagner. 

Question.  Where  did  he  live  ? 

Answer.  He  was  here  at  the  time.    I  don't  know  where  he  lived.    I  under- 
stood he  was  doing  business  in  Nassau.    I  believe  he  came  from  Nassau. 
Question.  Did  you  ever  know  him  before  ? 


NEW  YORK  CUSTOM  HOUSE. 


131 


Answer.  No,  sir. 

Question.  Was  he  introduced  to  you  by  anybody  ? 

Answer.  I  believe  he  was.    Who  it  was  I  could  not  tell. 

Question.  Would  you  take  a  carriage  and  pay  for  it  yourself  without  know- 
ing whether  the  party  was  responsible  ? 

Answer.  I  have  done  such  things  when  I  had  charge  of  the  property  and 
shipped  it. 

Question.  Was  the  wagon  made  in  New  York  ? 

Answer.  I  presume  it  was.    It  was  bought  in  New  York. 

Question.  How  came  it  on  board  ? 

Answer.  It  was  shipped. 

Question.  Who  sent  it  down  ? 

Answer.  I  suppose  it  was  the  man  that  it  was  bought  from.  I  had  a  receipt 
for  it.    I  paid  the  money  for  it. 

Question.  Who  gave  the  order  for  the  making  of  it  ? 

Answer.  I  don't  know.  I  believe  this  man  bought  it  himself,  but  I  paid 
for  it. 

Question.  Do  the  committee  understand  that  the  man  came  to  New  York, 
gave  an  order  for  a  buggy,  which  is  made  for  him,  even  having  the  letters  of 
his  name  put  on  it? 

Answer.  That  I  don't  kntfw  anything  about. 

Question.  Having  the  initials  of  his  name  on  it,  that  it  is  sent  to  you,  and 
you,  without  any  knowledge  of  the  man,  pay  for  the  wagon  ? 
Answer.  I  understood  that  the  man  had  means. 
Question.  Who  did  you  understand  it  from  ? 

Answer.  1  think  there  was  some  one  else  from  Nassau  here  at  the  time,  who 
introduced  me  to  him.  I  had  full  charge  of  the  property.  I  have  paid  for 
goods  for  people  from  the  islands,  and  when  I  get  them  out  there,  I  deliver  the 
goods  to  them. 

Question.  What  became  of  the  wagon  ? 

Answer.  It  is  here  in  New  York.  I  suppose  it  is  here.  They  took  it  out  of 
the  vessel. 

Question.  Was  there  anything  with  the  wagon  belonging  to  it  ? 
Answer.  I  do  not  remember  whether  there  was  or  not.    There  may  have 
been  a  harness.    I  am  not  certain. 

Question.  Did  you  pay  for  the  harness  ? 

Answer.  I  am  not  certain.  I  paid  the  bill.  I  could  not  tell  whether  there 
was  a  harness  or  not. 

Question.  Did  you  not  know  where  the  wagon  was  going  to  when  it  got  to 
Nassau  ? 

Answer.  I  understood  it  was  going  to  be  used  in  Nassau. 

Question.  Do  you  not  know  that  this  individual  stated  to  the  persons  of 
whom  he  bought  the  wagon  that  he  was  going  to  use  that  wagon  in  Montgom- 
ery, Alabama  ? 

Answer.  No,  sir. 

Question.  When  did  you  undertake  and  agree  that  you  would  receive  pay 
for  it  in  Nassau  ? 

Answer.  I  could  not  state  the  time. 
Question.  How  long  before  the  vessel  sailed  ? 
Answer.  Probably  three  or  four  days. 

Question.  You  did  not  go  to  the  maker  of  the  wagon  with  the  man  for  whom 
it  was  designed  ? 
Answer.  No,  sir. 

Question.  Who  did  you  understand  from  that  the  buggy  was  to  be  used  in 
Nassau  ? 

Answer.  From  Mr.  Wagner. 


132  NEW  YORK  CUSTOM  HOUSE. 

Question.  Did  he  say  anything  about  his  horses? 

Answer.  He  asked  me  if  I  could  ship  him  a  horse,  and  I  told  him  I  could 
riot,  because  a  restriction  was  put  on  horses  and  cattle. 

Question.  lie  says  that  he  had  made  large  sums  of  money  in  running  the 
blockade  ? 

Answer.  That  I  don't  know  anything  about. 

Question.  Did  he  say  anything  about  this  being  the  last  trip  he  was  going  to 
make  ? 

Answer.  He  never  made  any  remarks  about  it. 

Question.  He  seems  to  have  been  rather  boastful,  and  a  man  very  fond  of 
telling  his  business,  and  told  in  two  or  three  places  in  New  York  that  he  had 
made  money  by  running  the  blockade,  but  was  going  to  try  it  only  this  time  ; 
that  he  had  a  wagon,  harness,  and  a  very  fine  horse 

Answer.  I  heard  that  in  the  court-room.  I  never  knew  anything  about  it 
until  I  heard  it  there. 

Question.  Did  he  not  come  here  with  the  intention  of  buying  the  Jose.  Did 
he  not  say  that  to  you? 

Answer.  No,  sir. 

Question.  That  he  had  brought  on  the  money  for  that  purpose  ? 
Answer.  No,  sir.    He  never  said  any  such  thing  to  me. 

Question.  Was  there  any  other  thing  which  wm  brought  on  board  of  the 
vessel  for  him  besides  the  wagon  and  harness  ? 
Answer.  What  liquors  there  were. 

Question.  Was  there  anything  else  besides  these  hampers  or  cases  of  liquors 
on  the  vessel  ? 

Answer.  I  believe  there  was  not,  except  the  cases  of  goods. 
Question.    What  were  in  the  cases  ? 

Answer.  There  were  a  few  cases  of  goods  of  different  kinds.  I  could  not 
tell  you  what  the  items  were  ;  just  like  those  that  are  picked  up  for  a  country 
store. 

Question.  Did  you  not  claim  at  that  time  that  you  owned  the  entire  cargo  ? 
Answer.  I  claimed  that  I  owned  it.    The  potatoes  and  apples  I  ordered  sold 
in  Havana.    I  paid  for  every  dollar  on  board,  vessel  and  all. 
Question.  Were  you  in  court  in  connexion  with  the  Jose  ? 
Answer.  Yes,  sir. 

Question.  Do  you  recollect  what  you  swore  to  at  that  time  ? 
Answer.  I  don't  know  as  I  can  remember  word  for  word. 
Question.  Do  you  recollect  where  the  vessel  was  cleared  for  ? 
Answer.  For  Havana,  and  there  is  the  place  where  she  was  going. 

By  Mr.  Le  Blond  : 
Question.  Did  the  owner  of  the  wagon  take  passage  on  your  vessel  ? 
Answer.  Y"es,  sir. 

Question.  Who  did  you  buy  the  vessel  from  ? 
Answer.  From  the  United  States  marshal. 
Question.  What  sort  of  a  title  did  he  give  you  ? 
Answer.  A  bill  of  sale. 
Question.  Was  your  name  inserted  in  it  ? 
Answer.  I  believe  it  was. 

Question.  You  could  not  hold  an  American  vessel. 

Answer.  I  put  her  right  under  the  British  flag,  and  I  sent  the  bill  of  sale  to  the 
British  consul.    I  believe  Mr.  Edwards  made  out  the  papers. 
Question.  How  many  vessels  are  you  interested  in  individually  ? 
Answer.  Five,  I  believe. 

Question.  Do  I  understand  you  to  say  that  the  title  that  the  marshal  gave 
you  was  made  out  in  your  own  name  ? 


NEW  YORK  CUSTOM  HOUSE.  133 

Answer.  I  don't  know  whether  it  was  or  not.    I  suppose  it  was.    They  gen-* 
erally  gave  me  a  bill  of  sale.    They  may  have  given  it  to  me  in  blank  without 
filling  it  up  with  my  name.    I  have  bought  vessels  many  a  time  without  filling 
up  the  name. 

Question.  Did  you  not  direct  how  it  should  be  made  out  ? 
Answer.  No,  sir. 

Question.  You  say  you  owned  in  your  own  right  five  vessels  { 
Answer.  A  part  of  five. 

Question.  How  many  has  your  wife  an  interest  in  I 
Answer.  She  has  an  interest  in  two. 

Question.  Has  any  vessel  in  which  your  wife  has  an  interest  ever  been  sus- 
pected of  running  the  blockade  and  been  seized  ? 
Answer.  No,  sir. 

Question.  How  many  that  you  have  an  interest  in  have  been  seized  ? 
Answer.  Only  this  steamer  Jose. 

Question.  And  the  bills  of  sale  of  the  vessels  in  which  your  wife  has  an  in- 
terest— upon  whose  direction  were  they  made  out  in  her  name  ? 

Answer.  It  might  have  been  mine.  I  had  a  power  of  attorney  from  her  to 
act. 

Question.  When  she  acquired  an  interest,  you  instructed  the  person  who 
drew  up  the  bill  of  sale  to  incorporate  her  name  as  the  party  in  interest  ? 

Answer.  I  believe  so.  I  would  sometimes  tell  them  to  put  in  my  own 
name. 

Question.  When  the  bill  of  sale  was  completed,  did  you  not  have  your  own 
name  incorporated  ? 

Answer.  I  expect  the  bill  of  sale  of  this  steamer  has  got  my  name ;  I  am 
sure  that  my  name  is  in  it  as  the  purchaser. 

Question.  Put  in  at  the  time  of  the  purchase  ? 

Answer.  That  I  don't  know. 

Question.  Was  it  put  in  the  bill  of  sale  before  or  after  the  seizure  ? 
Answer.  I  never  had  a  bill  of  sale  since  the  vessel  was  seized. 
Question.  Who  has  the  bill  of  sale  ? 
Answer.  The  authorities  took  all  the  papers. 
Question.  And  that  bill  of  sale  was  among  the  papers  ? 
Answer.  Yes,  sir. 

Question.  Don't  you  know  whether  your  name  was  incorporated  in  it  or  not  ? 
Answer.  I  believe  my  name  was  incorporated  in  it. 
Question.  Your  wife  had  no  interest  in  that  vessel  ? 
Answer.  No,  sir. 

Question.  Did  anybody  who  was  an  American  citizen? 

Answer.  No,  sir ;  I  paid  every  cent  for  her ;  I  am  the  sole  purchaser. 

Question.  After  this  paper  was  put  in  your  possession,  do  you  have  any  recol- 
lection whether  you  incorporated  your  name  in  it,  or  afterwards  ? 

Answer.  I  do  not  remember  whether  I  did ;  I  know  I  sent  the  bill  up  to  Mr. 
Edwards,  who  made  out  the  paper;  I  took  it  then  to  the  consul. 

Question.  When  you  bought  other  vessels  did  you  not  always  direct  in 
whose  name  the  bill  of  sale  should  be  drawn  up  ? 

Answer.  In  some  instances  I  have,  and  in  some  not. 

Question.  Have  you  ever  had  a  bill  of  sale  where  you  were  the  sole  pur- 
chaser, and  where  your  name  did  not  appear  in  it  as  purchaser  ? 
Answer.  Yes,  sir. 

Question.  Who  was  that  bill  of  sale  signed  by  ? 

Answer.  I  don't  know ;  I  remember  receiving  one  upon  one  occasion  ;  you 
go  round  to  the  brokers  to  buy  a  vessel. 


134  NEW   YORK  CUSTOM  HOUSE. 

•Question.  The  purchaser's  name  is  inserted  by  him  when  these  bills  of  sale 
are  brought  to  him  ? 

Answer.  Some  of  them  are,  and  some  of  them  are  not. 
By  Mr.  Rollins  : 

Question.  As  an  English  subject  you  claimed  that  you  could  do  as  you 
pleased ;  you  could  buy  and  sell  blockade  runners  ? 
Answer.  Xo,  sir. 

Question.  You  do  not  make  any  such  claim  as  that  ? 
Answer.  No,  sir ;  I  only  bought  the  vessel. 

Question.  Did  you  not  say  to  some  parties,  about  the  time  of  this  transaction, 
that  you,  as  a  British  subject,  had  a  perfect  right  to  buy  and  sell  blockade  run- 
ners ? 

Answer.  I  don't  know  that  I  ever  did. 

Question.  Do  you  undertake  to  swear  that  you  did  not  use  that  language,  or 
language  equivalent  to  that,  to  parties  in  New  York,  about  the  time  of  the  pur- 
chase of  this  vessel  ? 

Answer.  I  don't  remember  using  any  such  language. 

Question.  You  will  not  swear  that  you  did  not  use  the  language'? 

Answer.  I  don't  think  I  did  ;  I  have  no  interest  in  the  south. 

Question.  It  is  a  pretty  wrell  established  fact  that  you  made  such  a  statement 
as  this. 

Answer.  I  don't  know  that  I  ever  did;  I  have  no  desire  to  injure  the  gov- 
ernment at  all  in  any  way  or  shape. 

By  the  chairman : 
Question.  You  say  you  are  the  owner  of  the  Jose  :' 
Answer.  Yes,  sir. 

Question.  What  time  was  she  seized  ? 
Answer.  On  the  6th  of  October. 
Question.  Was  she  properly  cleared  ? 
Answer.  Yes,  sir. 

Question.  Did  she,  to  your  knowledge,  have  anything  on  board  other  than 
those  goods  that  you  have  spoken  of? 

Answer.  There  was  nothing  on  board  but  what  she  actually  cleared,  to  my 
knowledge — nothing  more  than  her  stores. 

Question.  How  long  after  she  was  seized  were  you  notified  of  it  ? 

Answer.  I  heard  of  it  the  next  morning. 

Question.  Did  you  take  any  steps  to  find  out  the  cause  of  her  being  seized  ? 
Answer.  Yes,  sir;  I  went  to  the  British  consul,  and  he  wrote  to  the  collector. 
Question.  Did  you  apply  to  the  British  consul  in  the  first  instance  ? 
Answer.  Yes,  sir. 

Question.  And  he  wrote  to  the  collector  ? 
Answer.  Yes,  sir. 

Question.  What  was  the  next  step  % 

Answer.  He  wrote  to  the  collector  twice — so  he  told  me ;  I  believe  it  was 
some  ten  or  twelve  days  before  the  second  letter  came ;  and  his  answer  was, 
that  owing  to  the  multiplicity  of  business  his  officers  had  not  made  their  report. 

Question.  Then  it  continued  to  linger  on  in  just  that  shape  ? 

Answer.  Yes,  sir ;  they  asked  me  to  hold  on  a  few  days  longer ;  after  a  few 
days  I  went  down  to  sec  him  again,  and  he  said  it  did  not  appear  as  if  the  col- 
lector was  going  to  make  any  answer.  He  told  me  that  I  had  better  make  a 
list  of  the  invoices  and  send  it  to  Lord  Lyons.  I  understood  after  that  Lord 
Lyons  had  seen  Secretary  Seward,  and  he  had  written  to  Mr.  Barney. 

Question.  In  the  meanwhile,  did  you  approach  any  one  or  any  one  come  to 
you  with  reference  to  her  release  ? 

Answer.  I  never  approached  any  one.    I  went  to  Mr.  Frederick  Smythe 


NEW  YORK  CUSTOM  HOUSE. 


135 


(No.  1  or  2  South  William  street)  about  selling  a  vessel,  the  Southern  Belle,  1 
think.  Two  or  three  days  after  that  I  met  him  in  Beaver  street,  or  at  the  corner 
of  Wall  and  Pearl,  and  he  told  me  there  was  a  man  came  to  him  who  wanted  to 
know  of  him  if  he  knew  me;  he  told  him  "yes;"  and  he  wanted  to  know  of 
him  if  I  would  give  a  couple  of  thousand  dollars  to  have  her  released.  I  asked 
Mr.  Smythe  who  the  man  was  ;  and  he  says,  "  You  know  these  times  are  trouble- 
some times,  and  if  these  folks  find  out  that  I  was  saying  anything  about  it  they 
would  give  me  considerable  trouble."  He  finally  told  me  who  the  man  was;  this 
man  was  Hussey.  The  very  next  day  after  my  steamer  was  stopped  he  (Hus- 
sey)  came  into  my  office,  the  man  who  I  supposed  was  this  man,  (he  is  a  stout, 
pretty  good-looking  man,)  and  brought  a  letter  and  left  it.  One  of  my  clerks 
handed  it  to  me,  and  I  asked  him  who  brought  the  letter,  and  he  says,  that  man 
who  has  just  gone  out.  His  name  was  signed  to  it,  recommending  me,  if  1 
wanted  to  get  the  steamer  cleared,  to  go  to  Webster  &  Craig,  and  they  would 
probably  get  her  clear.  That  letter  is  in  my  hands  now.  Soon  after  that  Mr. 
Myers  told  me  (I  don't  know  whether  I  met  him  in  the  street  or  he  came  into 
my  office)  that  one  of  the  custom-house  folks  was  asking  him  if  he  knew  me. 
and  he  said  yes ;  and  he  asked  him  if  I  would  give  $5,000  to  get  that  steamer 
cleared.  Says  T,  "  Mr.  Myers,  I  will  not  give  a  cent,  for  I  am  not  doing  any- 
thing wrong  or  illegal."  I  told  my  lawyer  all  these  facts.  While  the  case  was 
going  on  Mr.  Myers  came  to  me  again,  and  he  said  Mr.  Denison  requested  him 
to  come  and  see  me  as  to  what  proposition  I  had  to  make  about  the  steamer. 
Says  I,  "  I  cannot  see  why  he  should  take  that  liberty  with  me  ;"  I  did  not  know 
what  it  meant.  He  (Myers)  revealed  to  me  some  things  that  he  knew.  I  be- 
lieve he  (Denison)  had  seized  some  money  belonging  to  Wolff,  and  it  appears 
that  Myers  was  going  to  see  him  about  this  money,  and  he  went  on  to  tell  me  that 
he  (Denison)  charged  him  so  much  to  deliver  up  the  money  to  him.  I  don't 
know  whether  Myers  had  made  him  an  offer.  "  I  mean,"  says  he,  "  to  take  off  the 
numbers  of  the  greenbacks  and  have  somebody  elBe  called  as  a  witness."  I  told 
him,  (Myers,)  "You  tell  Denison  I  have  got  no  proposition  to  make  to  him."  I 
went  in  the  mean  time  to  my  lawyers  and  told  them  the  circumstances.  Says  I, 
"  Suppose  that  man  sends  for  me;  what  shall  I  say  to  him?"  Says  he,  "  Listen 
to  the  whole  story ;  be  careful  what  you  say  yourself."  Myers  came  back  and 
told  me  that  he  (Denison)  said  he  would  let  her  go  for  825,000;  and  he  says  to 
Mr.  Denison,  "  Do  you  suppose  a  man  would  give  more  than  he  paid  for  the 
steamer?"  and  he  (Denison)  says  to  Myers,  "Would  she  be  worth  more,  prac- 
tically, if  he  sells  her  to  run  the  blockade  ?"  I  wanted  them  put  on  the  stand, 
Mr.  Hanscom  and  Mr.  Denison ;  I  was  very  willing  that  they  should  be  ex- 
posed in  the  court-room  ;  I  wanted  it  all  exposed  before  the  public  ;  my  lawyers 
told  me,  "You  hold  on;  there  is  time  to  get  them  punished  hereafter."  I  took 
their  legal  advice.    I  believe  Mr.  Denison  is  the  man  that  sent  me  down  here. 

Question.  What  do  you  mean  when  you  speak  of  Denison  charging  so  much 
to  deliver  up  the  money  of  Mr.  Wolff  ? 

Answer.  Pie  was  making  some  arrangement  to  charge  Myers  so  much  to  deliver 
up  the  money.  I  understood  from  Myers  that  he  would  give  Denison  so  much, 
and  said  he  had  made  up  his  mind  to  pay  so  much ;  and  if  he  did  pay,  he  (Myers ) 
was  going  to  take  the  numbers  of  the  greenbacks. 

By  Mr.  Rollins  : 

Question.  Without  going  through  the  whole  inquiry  as  to  Myers  and  as  to 
the  numbering  of  the  greenbacks,  you  never  ascertained  whether  he  did  or  did 
not  pay  the  money  ? 

Answer.  No,  sir. 

Question.  And  do  not  know  now  I 
Answer.  No,  sir. 


136  NEW  YORK  CUSTOM  HOUSE. 

By  Mr.  Le  Blond  : 

Question.  At  the  interview  you  had  with  Myers,  had  that  Wolff  transaction 
been  concluded  ! 
Answer.  No,  sir. 

Question.  Have  you  seen  him  since  ? 
Answer.  Yes,  sir. 

Question.  Have  you  had  any  talk  with  him  ? 

Answer.  No,  sir ;  I  asked  him  whether  he  would  testify  for  me  at  any  time 
I  wanted. 

By  the  chairman : 

Question.  You  stated  that  at  one  time  Hanscom  offered  you,  through  Sinythe 
or  Myers,  how  much  to  release  the  vessel  ? 
Answer.  Five  thousand  dollars. 

Question.  Did  you  ever  hear  from  Myers  any  other  transaction  like  that  of 
Hanscom  and  Denison  ? 

Answer.  No,  sir ;  that  was  the  reason  I  told  you  on  my  first  examination 
that  I  did  not  know  anything  of  my  own  knowledge. 

By  Mr.  Tvollins  : 
Question.  How  long  have  you  known  Myers  ? 

Answer.  I  believe  the  first  time  I  ever  met  him  was  last  spring  or  winter : 
when  I  first  knew  him  he  was  taking  passage  in  one  of  the  vessels  for  Nassau. 
Question.  Is  he  a  native  of  this  country  ? 
Answer.  No,  sir;  he  is  a  Jew. 
Question.  What  is  his  business? 

Answer.  I  don't  know  ;  I  understood  some  one  to  say  that  he  boarded  at  the 
Lafarge  House. 

Question.  Do  you  know  what  he  went  to  Nassau  for  ? 
Answer.  I  do  not. 

Question.  You  do  not  know  that  he  has  been  shipping  goods  to  Nassau  ? 
Answer.  Yes,  sir ;  I  understood  he  had ;  in  fact,  I  know  he  has 
Question.  You  do  not  know  that  he  has  been  detected  in  running  the  block- 
ade, and  engaged  in  shipping  goods  for  that  purpose  ? 
Answer.  No,  sir. 

Question.  Have  you  heard  anything  about  his  late  transactions  ? 
Answer.  No,  sir. 

Question.  That  he  had  trouble  with  the  custom-house  about  shipping  goods  ? 
Answer.  No,  sir. 

By  the  chairman: 

Question.  Did  he  previously  have  any  trouble  with  Mr.  Denison  or  Hanscom  t 
Answer.  Not  that  I  know  of. 

Question.  Did  he  have  any  goods  seized  by  them  to  your  knowledge? 
Answer.  Not  that  I  know  of.    I  only  tell  these  facts  just  as  he  told  them  to 
me;  just  as  I  told  them  to  my  lawyers  at  that  time. 

By  Mr.  Rollins : 

Question.  Why  did  you  apply  to  the  British  consul  in  reference  to  the  seiz- 
ure of  this  vessel? 

Answer.  Because  she  was  under  the  British  flag. 

Question.  Some  of  your  vessels  sailed  under  the  British  flag  and  some  under 
the  American  flag  ? 

Answer.  I  have  got  none  under  the  American  flag. 
Question.  Yotir  wife  has? 


NEW   YORK  CUSTOM  HOUSE.  137 

Answer.  Yes,  sir;  this  gentleman  (referring  to  Mr.  Le  Blond)  asked  me 
whether  any  of  my  wife's  vessels  were  not  running  the  blockade.  None  of 
them  have  been  caught.  One  that  she  owns  a  small  interest  in  has  been  em- 
ployed by  the  government  for  eight  months.  I  have  no  business  with  her ;  she 
is  owned  in  Connecticut — most  of  her. 

Question.  Have  you  auy  other  evidence  that  these  propositions  were  made  to 
release  this  vessel  for  $5,000  by  Hanscom,  and  for  £25,000  by  Denison,  other 
than  the  statements  of  Mr.  Myers  2 

Answer.  That  is  all  I  have;  how  much  they  are  worth  I  can't  tell. 

By  Mr.  Le  Blond  : 
Question.  You  received  no  written  proposition  from  either  one  of  them  I 
Answer.  No,  sir ;  no  more  than  that  letter  that  Hussey  left  in  the  om'co. 
Question.  There  is  no  such  proposition  in  that? 

Answer.  No,  sir  ;  nothing  more  than  recommending  me  to  go  to  Webster  and 
Craig. 

Question.  Did  you  ever  call  upon  them  I 
Answer.  No,  sir. 

Question.  What  is  their  reputation  in  connexion  with  custom-house  matters 
Answer.  I  don't  know;  they  are  men  I  don't  know  much  about.    I  don't 

know  that  this  man  (Myers)  is  in  New  York  now ;  I  can't  tell  whether  he  is  or 

not. 

Testimony  of  William  A.  Smalley. 

New  York,  March  18,  1SG4. 

William  A.  Smalley  sworn  and  examined. 

Am  a  resident  of  the  city,  and  have  been  all  my  life  ;  reside  in  42d  street. 

By  the  chairman  : 
Question.  What  is  your  occupation,  and  what  has  it  been  ? 
Answer.  I  have  been  in  the  brokerage  business  for  six  or  seven  years — loan- 
ing money  and  business  of  that  description. 

Question.  Have  you  been  in  mercantile  business  at  all. 
Answer.  No,  sir. 

Question.  The  committee  understand  that  you  have  some  knowledge,  and,  per- 
haps, have  had  something  to  do  with  the  system  of  getting  bonds  accepted  and 
cancelled  at  the  custom-house  of  persons  who  have  been  engaged  in  shipping 
goods  to  foreign  ports  ] 

Answer.  I  have  had  nothing  to  do  with  getting  bonds  cancelled  or  getting 
goods  through. 

Question.  You  have  some  knowledge  of  the  way  in  which  bonds  have  been 
taken  ? 

Answer.  I  have  been  security  upon  them  ;  not  as  principal. 
Question.  For  what  parties  ? 

Answer.  Generally  for  Mr.  Benjamin,  and  I  have  been  security  for  Mr.  Woolff. 

Question.  Have  you  for  Mr.  Evans  ? 

Answer.  No,  sir;  I  don't  recollect  that  name  at  all. 

Question.  The  committee  would  be  very  glad  to  have  you  tell  us  what  you  may 
know  about  these  bonds ;  how  they  were  obtained,  &c;  or  whether  money  has 
been  used,  so  far  as  you  know,  in  any  way  in  connexion  with  them. 

Answer.  I  am  disposed  to  tell  you  all  I  know  in  respect  to  my  connexion 
with  custom-house  matters  in  any  way.  I  had  a  situation  in  the  custom-house 
which  was  given  to  me  without  solicitation.  I  had  been  very  active  in  my 
party,  and  had  spent  between  two  and  three  thousand  dollars,  and  was  active 


138 


NEW  YORK  CUSTOM  HOUSE. 


in  getting  places  for  my  friends.  Mr.  Palmer  told  me  that  I  ought  to  have  Borne 
place  for  myself  I  told  him  that  I  could  take  no  place  which  required  active  duty. 
I  was  appointed  a  debenture  clerk.  They  told  me  that  in  that  department  there 
were  always  some  clerks  who  did  not  have  much  to  do,  and  if  I  chose  I  could 
have  one  of  these  places,  at  81,000  a  year,  and  I  was  appointed. 
Question.  What  time  was  this  I 

Answer.  That  must  have  been  more  than  a  year  and  a  half  ago  ;  I  think  it 
was  in  the  fall  of  the  year  1862,  and  I  used  to  report  to  the  surveyor. 

Question.  Were  you  appointed  at  the  solicitation  of  any  person — any  par-, 
ticular  parties  1 

Answer.  I  think  Mr.  Palmer  spoke  to  the  surveyor. 
,   Question.  And  you  received  your  appointment  from  Mr.  Andrews ? 

Answer.  Yes,  sir ;  at  the  solicitation  of  Mr.  Palmer.  I  drew  my  pay  as 
long  as  I  staid  there,  and  when  they  got  busy  the  surveyor  said  I  must  go  to 
work,  and  I  resigned. 

Question.  AVhen  did  you  resign? 

Answer.  I  think  in  November,  1863;  I  was  there  a  year  and  a  quarter, 
probably. 

Question.  You  told  Mr.  Palmer,  at  the  time  you  were  appointed,  that  if  The 
office  required  active  duties  you  would  not  accept  it  ? 

Answer.  Yes,  sir  ;  if  it  required  constant  service.  They  told  me  that  in  that 
department  they  had  more  clerks  than  they  required ;  that  I  could  report  my- 
self, and  whenever  they  wanted  me  they  would  let  me  know.  1  used  to  go 
there  every  day.  I  had  very  little  to  do ;  I  went  with  the  surveyor  sometimes 
as  an  aid  to  examine  packages. 

Question.  How  many  days  do  you  suppose  you  were  on  duty  hi  all — a 
dozen  ? 

Answer.  I  think  that  will  cover  it. 

Question.  I  interrupted  you  while  you  were  going  on  with  your  statement. 

Answer.  I  was  speaking  about  my  resigning.  During  the  time  I  was  em- 
ployed, I  was  requested  by  Mr.  Stanton  to  act  for  him  while  he  was  absent  in 
Washington  in  December,  1862.  I  used  to  beat  Palmer's  office  a  great  deal  to 
see  Palmer  to  get  places  for  my  friends,  and  I  used  to  be  brought  into  contact 
with  Stanton  in  thafr  way  ;  they  occupied  desks  close  together.  I  got  ac- 
quainted with  him  in  that  way,  and  I  used  to  get  Mr.  Stanton  to  speak  at  meet- 
ings ;  for  the  six  or  seven  days  while  Mr.  Stanton  was  absent  I  acted  as  notary 
in  taking  bonds. 

Question.  You  then  took  Mr.  Stanton's  place  for  the  time  being  ? 
Answer.  As  a  notary ;  while  he  was  absent  from  the  city  his  clerks  filled  up 
the  bonds  and  I  acted  as  a  notary. 
Question.  Who  filled  up  the  bonds  l 

Answer.  One  or  two  of  the  clerks  outside  ;  his  *on  was  one,  and  he  also  had 
another  clerk  or  two. 

Question.  Did  any  parties  justify  before  you? 

Answer.  Yes,  sir  ;  quite  a  number  during  the  six  or  seven  days  I  was  there. 
Question.  Did  he  give  you  any  special  directions  about  this \ 
Answer.  No,  sir  ;  only  to  act  as  a  notary  during  his  absence.  I  got  paid  for 
every  bond  that  was  acknowledged  fifty  cents ;  where  there  were  two  signa- 
tures, twenty-live  cents  each.  I  did  not  care  about  making  the  money  ;  1  was 
doing  it  as  a  favor  to  Mr.  Stanton ;  he  said  I  might  divide  the  fees  with  his 
son ;  sometimes  we  would  take  8  or  10  dollars  a  day  and  we  would  divide  the 
money. 

Question.  Were  you  present  when  any  of  these  bonds  were  cancelled  ? 
Answer.  There  were  more  of  them  cancelled  during  my  time. 
Question.  Were  you  present  at  any  time  when  they  were  cancelled — when 
Mr.  Stanton  was  present  ? 


NEW  YORK  CUSTOM  HOUSE 


139 


Answer.  I  do  not  recollect  any  time. 

Question.  Do  you  know  anything  of  this  system  that  seems  to  have  prevailed 
at  one  time  of  bonds  being-  given  up  without  being  cancelled  ? 
Answer.  No,  sir. 

Question.  You  have  heard  all  about  it  % 

Answer.  I  have  heard  it  rumored  that  there  were  some  names  cut  out  of  the 
bonds  by  Stanton's  son.  I  think  it  was  in  May,  1863,  that  I  became  surety 
for  Mr.  Benjamin,  or  through  Mr.  Benjamin's  solicitation.  I  knew  him  very 
well ;  I  got  acquainted  with  him  along  in  the  early  part  of  1862.  I  met  him 
at  dinner  and  other  places  with  others  of  my  friends.  Before  I  voted  for  Mr. 
Benjamin  as  surety,  I  asked  Mr.  Stanton  about  it.  I  said  to  him,  <k  Benjamin 
is  a  friend  of  mine,  and  wants  me  to  act  as  surety  on  bonds  for  him  ;  what  do 
you  think  about  it  ?"  He  said,  "  He  has  been  shipping  a  very  long  time,  and  I 
guess  it  is  all  right ;  he  is  a  regular  shipper,"  and  I  became  surety  for  him  on 
several  bonds  in  that  way.  When  I  went  on  the  first  bond  I  did  it  as  a  mattei 
of  favor.  After  we  came  out  he  gave  mean  envelope  with  my  name  on  the 
«»iit  side,  and  after  he  left  I  opened  it  and  found  a  check  in  it  for  8100.  I  think 
I  deposited  the  check  in  my  bank  to  my  own  account.  On  several  subsequent 
occasions  I  went  as  surety  for  Benjamin.  I  spoke  to  Mr.  Stanton,  and  he  said 
Mr.  Benjamin  is  a  regular  shipper,  and  as  long  as  the  papers  are  proper  with 
the  consul's  certificates  we  will  have  to  cancel  his  bonds.  Benjamin  told  me  he 
was  shipping  on  commission;  that  he  had  orders  from  people  living  in  Nassau 
to  purchase  goods  and  ship  them.  The  government  required  a  surety,  and  be 
felt  that  he  could  afford  to  give  me  something  for  it.  I  said  that  I  did  not  wanl 
pay  from  him.  There  was  no  understanding  between  us  as  to  compensation. 
He  gave  me  8100  on  every  subsequent  occasion. 

By  Mr.  Le  Blond  : 

Question.  What  was  the  character  of  the  goods  which  Benjamin  shipped  ? 
Answer.  He  shipped  boots  and  shoes,  drugs,  blankets,  and  I  don't  know 
what  else. 

Question.  To  what  ports  did  he  ship  I 
Answer.  To  Nassau. 

Question.  Had  he  been  in  the  habit  of  shipping  before  the  rebellion  I 
Answer.  Yes,  sir;  so  1  understood  from  Mr.  Stanton. 

Question.  Did  you  ever  hear  Mr.  Benjamin  say  whether  his  business  had  in- 
creased after  the  rebellion  commenced  ? 

Answer.  No,  sir ;  he  never  told  me  anything  of  the  kind,  except  that  he  had 
orders  from  merchants  doing  business  there. 

Question.  From  the  manifests  that  were  brought  in  to  Mr.  Stanton,  would 
they  show  whether  his  business  increased  or  not  during  this  rebellion  I 

Answer.  Certainly. 

Q.uestion.  From  your  knowledge  of  the  bonds  and  the  bills  of  shipment,  did 
the  business  continue  to  increase  until  the  time  it  was  stopped  ? 
Answer.  I  should  think  it  did. 

Question.  AVas  this  thing  ever  talked  of  between  you  and  Stanton,  or  any- 
body else  in  your  hearing,  in  reference  to  the  increase  of  his  business  ? 
Answer.  No,  sir. 

Question.  Was  not  the  character  of  the  goods  shipped  by  Mr.  Benjamin  such 
as  were  prohibited  by  the  rules  and  regulations  of  the  Secretary  of  the 
Treasury  ( 

Answer.  I  knew  it  required  a  surety  to  give  for  these  goods. 
Question.  Did  they  require  a  surety  in  any  class  of  goods  except  those  that 
were  going  to  those  parts  ? 
Answer.  1  do  nol  know. 

Question.  How  old  was  this  son  of  Stanton  .; 


140 


NEW  YORK  CUSTOM  HOUSE. 


Answer.  I  should  judge  he  was  probably  20  or  21  ;  I  do  not  think  he  ex- 
ceeded 23. 

Question.  Was  he  a  young  man  of  ordinary  capacity  and  ability  ? 
Answer.  Yes,  sir ;  he  appeared  to  be. 
Question.  A  man  of  ordinary  business  qualifications? 
Answer.  I  should  judge  so  as  a  clerk. 

Question.  Could  a  transaction  take  place  in  the  way  of  abstracting  bonds  or 
negotiating  for  the  abstraction  of  bonds  with  the  young  man  and  the  elder 
Stanton  not  know  of  it  ? 

Answer.  Yes,  sir  ;  very  well. 

Question.  From  the  situation  of  the  two  desks  occupied  by  young  Stanton 
and  the  elder  Stanton,  could  not  the  father  have  seen  every  transaction  of  young 
Stanton  ? 

Answer.  I  should  think  not ;  they  were  in  two  separate  rooms  :  young 
Stanton  had  full  control  of  all  the  bonds ;  his  father  when  he  wanted  a  bond 
would  have  to  go  to  his  son  for  him  to  find  it. 

Question.  They  were  first  filled  out  by  young  Stanton  I 

Answer.  Yes,  sir. 

Question.  And  taken  to  his  father's  desk  in  the  next  room  ? 
Answer.  Yes,  sir,  to  have  the  oath  administered  to  the  parties. 
Question.  Then  what  was  done  with  the  bonds  1 

Answer.  He  would  take  all  for  that  day  and  put  them  in  his  drawer,  and 
afterwards  give  them  to  his  son  to  file  and  number. 

Question.  I  would  ask  you  whether,  from  the  character  of  the  goods  shipped 
by  Benjamin,  you  did  not  suspect  that  they  found  their  way  into  the  southern  * 
country  ? 

Answer.  No,  sir ;  I  had  not  the  least  idea  of  that ;  if  I  had,  I  should  not 
have  gone  security  by  any  means  upon  those  bonds. 

Question.  The  amount  and  quantities  of  these  shipments  continued  to  increase 
during  the  progress  of  the  rebellion  I 

Answer.  Yes,  sir. 

Question.  Of  the  class  of  goods  that  he  shipped  1 
Answer.  Yes,  sir. 

Question.  How  did  you  account  for  that  ? 

Answer.  I  supposed  that  these  parties  had  given  orders  for  larger  quantities 
of  goods. 

Question.  Upon  what  principle  would  you  account  for  the  increased  amount 
of  his  business — from  the  increase  of  population,  or  greater  outlets  for  these 
goods  ? 

Answer.  I  supposed  that  Nassau  had  got  to  be  a  great  port;  that  there  were 
large  quantities  of  goods  sold  there,  and  that  these  merchants  were  having  larger 
sales. 

Question.  Were  Benjamin  and  WoolfT  partners  I 
Answer.  Not  to  my  knowledge. 
Question.  They  were  separate  firms  ? 

Answer.  I  understood  that  Woolff  was  doing  business  at  Nassau;  I  saw  him 
here  once  or  twice,  but  I  should  "not  know  him  now  if  I  should  see  him. 

Question.  Did  Mr.  Woolff  talk  with  you  in  reference  to  the  signing  of  these 
bonds  ? 

Answer.  No,  sir. 

Question.  Your  conversation  was  with  Benjamin  ? 
Answer.  Yes,  sir. 

Question.  How  many  bonds  did  you  sign  for  Benjamin  ( 
Answer.  I  think  eight. 

Question.  Did  you  sign  any  bonds  for  Mr.  AVoolff  ? 
Answer.  Yes,  sir. 


NEW  YORK  CUSTOM  HOUSE. 


141 


Question.  Upon  whose  suggestion  did  you  sign  these  bonds? 

Answer.  Mr.  Benjamin's ;  he  told  me  that  Mr.  Woolfr'  was  tin-  principal  to 
whom  he  was  shipping  ;  if  I  would  go  security  for  Mr.  Woolff  it  would  be  doing 
him  (Benjamin)  a  favor. 

Question.  So  that  upon  the  recommendation  of  Mr.  Benjamin  yon  signed 
bonds  for  WoolfY  ? 

Answer.  Yes,  sir. 

Question.  How  many  did  you  sign  for  WoolfF  ? 
Answer.  One  or  two. 

Question.  Did  you  receive  a  consideration  for  the  bonds  you  signed  for 
Woolff? 

Answer.  I  received  a  check  from  Benjamin,  payable  to  my  order. 
Question.  Then  you  signed  eight  for  Benjamin  and  two  for  WoolfT  ! 
Answer.  I  think  eight  or  nine  in  all.  '  * 

Question.  Including  the  ones  that  you  signed  for  Wool  ft  ? 
Answer.  Yes,  sir. 

Question.  How  much  did  you  receive  for  signing  each  bond  ? 

Answer.  For  each  bond,  after  a  day  or  two,  and  sometimes  it  would  be  a 
week,  he  would  meet  me  and  give  me  a  check  for  $100.  He  would  meet  me 
and  say,  -I  have  been  wanting  to  see  you,"  and  would  pull  out  an  envelope. 

Question.  Did  you  know  at  the  time  that  the  rules  and  regulations  of  the 
custom-house  prohibited  a  customhouse  officer  from  signing  bonds  for  the 
exportation  of  goods  ? 

Answer.  No,  sir. 

Question.  You  say  that  Mr.  Stanton  justified  you  in  signing  these  bonds  1 
Answer.  Yes,  sir. 

Question.  Had  you  at  any  time  any  conversation  with  Mr.  Barney  on  the 
subject  ? 

Answer.  No,  sir. 

Question.  Do  you  know  whether  Mr.  Barney  approved  of  it  I 
Answer.  I  do  not. 

Question.  Did  any  other  officer  in  the  custom-house  approve  of  it  when  it 
v,  as  known,  or  before  it  was  done,  aside  from  Mr.  Stanton  ? 

Answer.  Mr.  Palmer  knew  that  I  was  acting  as  surety  there  ;  and  he  says, 
"  you  had  better  see  Mr.  Stanton,  because  he  is  the  head  of  the  bureau,  and  he 
can  give  you  all  the  information  you  want." 

Question.  Have  you  had  any  conversation  with  Mr.  Stanton  lately  upon  the 
subject,  since  his  removal  1 

Answer.  I  have  not  seen  him  since  last  November  ;  I  think  I  met  him  once 
in  Pine  street  and  shook  hands  with  him ;  that  was  all. 

Question.  Had  you  at  that  time  any  conversation  with  him  in  reference  to 
these  matters  1 

Answer.  No,  sir;  at  the  time  he  was  displaced  I  was  in  Washington:  I  was 
t  here  some  two  weeks  ;  and  when  I  came  back  I  heard  that  there  was  another 
gentleman  put  in  the  place  of  Mr.  Stanton ;  I  have  never  seen  him  but  once 
since,  and  that  was  when  I  met  him  in  Pine  street. 

Question.  You  say  that  you  had  no  knowledge  that  these  goods  were  intended 
to  go  into  the  southern  confederacy  when  they  were  shipped  ? 

Answer.  No,  sir;  if  I  had,  I  should  never  have  gone  as  security  on  the 
bonds. 

Question.  Did  you  hear  any  one  advance  the  idea,  or  suggest  in  any  conver- 
sation that  it  was  suspected  that  Benjamin  was  shipping  goods  to  the  southern 
confederacy  ? 

Answer.  No,  sir  ;  but  I  was  told  right  to  the  contrary. 

Question.  You  said  a  little  while  ago  that  there  were  more  clerks  in  this  par- 


142 


NEW   YORK  CUSTOM  HOUSE. 


ticular  bureau  in  which  you  were  appointed  a  clerk  than  were  needed  to  do  the 
business  ;  now  how  many  clerks  were  idle  in  that  department? 

Answer.  1  could  not  tell  you. 

Question.  How  many  did  you  see  lying  around  ? 

Answer.  The  duties  of  that  department  relate  to  the  exporting  of  goods,  and 
the  clerks  have  to  sit  there  and  wait  their  turn  to  go  out.  I  presume  you  can 
find  half  of  them  there  now  waiting  their  turn  to  go  out. 

Question.  It  was  the  express  understanding  with  you  when  you  went  in 
there  that  you  were  not  to  be  put  on  active  duty  ? 

Answer.  Yes,  sir,  unless  they  were  very  busy. 

Question.  Were  there  any  more  clerks  employed  in  a  similar  way,  to  your 
knowledge,  or  by  information  from  the  heads  of  bureaus  ? 
Answer.  I  presume  there  must  have  been. 

Question.  What  causes  you  to  presume  that  there  were  others  ? 
Answer.  I  have  heard  of  men  that  have  been  on  special  duty.    What  is 
called  special  duty  is  waiting  to  be  sent  for. 
Question.  How  many  were  they? 

Answer.  I  could  not  form  any  estimate  ;  I  knew  there  were  a  great  many  on 
special  duty. 

Question.  In  the  same  department  in  which  you  were  ? 

Answer,  No,  sir ;  they  have  a  large  number  of  inspectors  and  night  watch- 
men. ¥ 

Question.  That  special  duty  means  that  you  were  to  rest  at  ease  until 
sent  for  ? 

Answer.  Yes,  sir  ;  there  are  always  favorites  who  aie  allowed  to  be  on  special 
duty. 

Question.  And  no  deduction  from  salary  is  made  by  reason  of  non-employ- 
ment ? 

Answer.  I  believe  not. 

Question.  Was  there  any  talk  between  you  and  Mr.  Stanton  and  Mr.  Palmer 
relative  to  the  character  of  the  consul's  certificate  for  the  collection  of  these 
bonds  ? 

Answer.  All  the  talk  I  had  with  Mr.  Stanton  upon  the  subject  was,  that  he 
told  me  if  the  consul  sent  the  proper  certificate  which  was  required  by  the 
Treasury  Department  that  it  would  be  all  right. 

Question.  Had  you  heard  that  there  was  any  controversy  at  that  time  rela- 
tive to  the  character  of  the  consul's  certificate  ? 

Answer.  No,  sir. 

By  the  chairman  : 
Question.  Did  you  know  young  Stanton? 
Answer.  I  knew  him  in  the  office,  not  out. 

Question.  Did  you  ever  see  him  after  he  and  his  father  were  disconnected 
from  the  office  ? 

Answer.  I  saw  him  once  in  the  Fourth  avenue  cars ;  there  was  no  reference- 
to  custom-house  matters. 

Question.  Do  you  know,  of  your  own  knowledge  or  by  hearsay,  anything 
about  his  proceedings  in  abstracting  bonds  ? 

Answer.  Nothing  except  what  I  heard  outside — that  it  was  supposed  some 
parties  paid  him,  and  he  cut  out  the  names. 

Question.  You  do  not  know  anything  personally  about  it  ? 

Answer.  Nothing  at  all. 

Question-  To  your  knowledge  or  belief  was  money  paid  by  parties  to  facili- 
tate their  operations  in  getting  goods  out  and  in  getting  bonds  accepted  without 
too  much  scrutiny,  &c,  in  order  to  comply  technically  with  the  law  ? 

Answer.  I  never  heard  anything  of  the  kind. 


NEW  YORK   CUSTOM  HOUSE. 


143 


Question.  I  mean  particularly  in  Mr,  Stanton's  department. 
Answer.  Xo,  sir;  I  have  no  recollection  or  knowledge  of  anything  of  the 
kind  being  done  with  Mr.  Stanton. 

By  Mr.  Le  Blond  : 

Question.  What  was  Mr.  Stanton's  custom  in  regard  to  inquiring  as  to  the 
pecuniary  standing  of  the  sureties  upon  these  bonds  ? 

Answer.  He  would  ask  them  if  the  goods  were  intended  for  the  use  of  the 
rebels  ;  and  if  they  said  no,  the  next  question  was  as  to  whether  they  were  worth 
the  amount  named  in  the  bond. 

Question.  Was  it  embraced  in  the  acknowledgment  and  the  affidavit  that  they 
subscribed  their  names  to,  or  were  they  not  required  to  take  the  oath  and  sub- 
scribe their  names  to  a  written  statement  ? 

Answer.  He  would  merely  ask  them  these  questions,  and  then  they  would 
sign  in  his  presence  as  a  notary. 

By  the  chairman  : 

Question.  There  is  a  custom,  they  tell  us,  in  one  department  of  the  custom- 
house, to  ask,  when  a  vessel  wants  a  berth,  how  much  she  sticks  out  from  the 
wharf — does  she  stick  out  twenty-live  or  one  hundred  feet — which  means  that 
parties  must  come  down  with  that  amount.  It  is  said  that  the  same  thing 
existed  with  reference  to  the  clearances  of  vessels,  and  that  technical  slang 
phrases  were  used  ? 

Answer.  I  know  nothing  of  the  kind. 

Question.  How  came  you  to  get  involved  in  any  difficulty  in  this  matter  ? 

Answer.  I  got  acquainted  with  Benjamin  through  my  friends,  and  signed 
with  him  as  surety ;  I  had  no  connexion  with  him  in  this  matter  further  than 
that. 

Question.  Did  you  ever  investigate  any  of  these  bonds  yourself  ? 
Answer.  I  had  nothing  to  do  with  them  ;  I  knew  nothing  of  the  entries,  ship- 
ments, or  the  clearances  of  any  of  the  vessels. 

By  Mr.  Rollins  : 

Question.  Did  you  have  to  swear  that  you  were  worth  a  certain  sum  of  money 
before  you  were  allowed  to  go  upon  the  bonds  ? 
Answer.  Yes,  sir. 

Question.  Are  you  sure  you  have  sworn  to  that  ? 
Answer.  I  have  upon  several  occasions. 
Question.  Was  that  the  uniform  practice  1 

Answer.  Almost  generally  ;  I  think  there  were  bonds  that  I  had  not  sworn  to. 
Question.  Whose  bonds  were  they  ? 
Answer.  Benjamin's. 
Question.  Why  was  that  ? 

Answer.  Sometimes  they  would  go  in  there,  and  I  would  not  be  down  that 
day,  and  they  would  say  Smalley  will  be  here  to-day  or  to-morrow,  and  he 
would  sign  them.    I  think  I  signed  one  bond  when  Mr.  Stanton  was  not  there. 

Question.  You  say  that  Mr.  Woolff  arrived  here  from  Nassau,  and  that  you 
subsequently  signed  some  bonds  for  him  ? 

Answer.  Yes,  sir. 

Question.  Did  you  have  a  talk  with  Mr.  'Woolff  about  the  trade  of  Nassau, 
and  the  parties  for  whom  these  goods  were  shipped  ? 

Answer.  Not  a  word  ;  all  the  talk  I  had  was  with  Mr.  Benjamin. 
Question.  For  how  large  an  amount  did  you  sign  for  Mr.  Woolff  ? 
Answer.  I  think  the  amount  of  the  bond  was  $10,000. 
Question.  Were  there  blankets  in  the  shipment  1 


144 


NEW    YOKE   CUSTOM  HOUSE. 


Answer.  I  am  not  sure;  there  might  have  been;  I  hardly  looked  at  the  mani- 
fest of  the  goods. 

Question.  What  amount  of  blankets  if 

Answer.  I  could  not  tell,  for  I  never  looked  over  the  shipment-  particularly  ; 
my  connexion  with  him  was  through  Benjamin. 

Question.  You  say  that  Woolff  came  here  from  Nassau,  and  subsequently 
shipped  a  large  amount  of  goods,  and  you  became  bondsman  ? 

Answer.  Yes,  sir. 

Question.  And  you  pretend  to  say  that  you  became  surety  for  him  without 
any  conversation  with  him  as  to  the  kind  of  business  ? 
Answer.  Yes,  sir. 

Question.  And  when  you  knew  that  he  was  shipping  boots  and  shoes  to  a 
port  in  direct  connexion  with  the  blockade  runners — shipping  the  very  goods 
that  the  rebels  wanted — you  never  had  any  talk  with  him  ? 

Answer.  No,  sir. 

Question.  Y~ou  never  suspected  that  they  were  intended  for  the  use  of  the 
rebels  ? 

Answer.  No,  sir. 

Question.  What  became  of  these  bonds  after  they  were  signed  1 
Answer.  They  were  cancelled — some  of  them. 
Question.  How  do  you  know  that  \ 
Answer.  I  was  told  so  by  Mr.  Stanton. 

Question.  Did  you  ever  go  to  Mr.  Stanton  about  the  cancellation  of  the  bonds 
you  had  signed  ? 
Answer.  Yes,  sir. 

Question.  With  what  evidence  did  you  go  upon  which  you  required  the  can- 
cellation of  them  .; 

Answer.  I  went  with  none.  I  was  told  by  Mr.  Benjamin  that  they  were 
cancelled,  and  I  would  go  to  Mr.  Stanton  and  ask  him  if  they  were  cancelled, 
and  he  said  yes. 

Question.  Who  did  procure  the  cancellation  ? 

Answer.  Mr.  Benjamin. 

Question.  Upon  what  evidence  ? 

Answer.  He  would  have  the  proper  certificates  of  the  cancel,  as  Mr.  Stanton 
informed  me. 

Question.  Were  you  ever  present  with  Benjamin  when  a  bond  was  cancelled? 
Answer.  Never. 

By  Mr  Le  Blond : 
Question.  What  is  the  number  of  your  ward  ? 
Answer   The  17th. 

Question.  How  many  persons  did  you  get  into  the  custom-house  through 
your  recommendation  from  that  ward? 

Answer.  Very  few  through  my  own.  They  were  generally  recommended  by 
the  general  organization,  and  they  would  allow  me  to  present  the  list. 

Question.  What  organization  do  you  refer  to  ? 

Answer.  The  republican  organization.  They  recommended  what  they  con- 
sidered were  suitable  men,  and  they  would  use  their  influence  to  get  them 
places.  They  would  semi  a  list  down,  and  from  that  list  the  appointments 
would  be  made. 

Question.  Were  there  any  rejected  ? 

Answer.  A  great  many  did  not  get  places;  probably  three-fourths  did  not  get 
places  who  were  applicants. 

Question.  Y^ou  say  that  you  got  your  place  through  the  influence  of  Mr. 
Palmer  ? 

Answer.  Yes,  sir. 


NEW  YORK  CUSTOM  HOUSE. 


145 


Question.  I  want  to  know  if  there  was  any  consideration  paid  by  you  or  any 
one  else  to  secure  that  position  for  you  ? 
Answer.  No,  sir. 

Question.  Was  there  any  money  paid  to  Mr.  Palmer,  to  Mr.  Stanton,  or  any 
other  officer  of  the  custom-house,  to  your  knowledge,  to  secure  the  appointment 
of  any  individual  to  a  place  there  ? 

Answer.  No,  sir.  I  used  to  loan  a  good  deal  of  money  to  custom-house  offi- 
cers, and  they  always  used  to  pay  me  at  the  end  of  the  month  when  they  got 
their  salaries. 

Question.  Did  they  pay  you  interest? 

Answer.  Some  would. 

Question.  Some  of  the  heads  of  departments  that  wanted  money,  would  you 
let  them  have  money  without  interest  ? 

Answer.  There  were  some  of  them  who  would  borrow  money  for  a  few  days; 
they  would  want  $50  or  $100  in  the  middle  of  the  month,  and  I  would  let  them 
have  it  without  interest. 

Question.  Did  Mr.  Palmer  borrow  money  of  you? 

Answer.  Yes,  sir ;  he  borrowed  a  good  deal  at  times. 

Question.  When  did  he  commence  borrowing — before  you  got  your  appoint- 
ment? 

Answer.  I  think  not;  he  borrowed  $122,  and  he  gave  me  his  note  for  it,  and 
it  ran  along  for  some  time  after  it  was  due;  subsequently  he  borrowed  $300  or 
$500. 

By  the  chairman : 

Question.  How  much  does  he  owe  you  now  ? 
Answer.  $1,200  or  $1,500  that  he  has  obtained  at  different  times. 
Question.  Was  it  his  practice  in  the  custom-house  to  borrow  money  of  the 
employes  ? 

Answer.  I  think  I  was  the  only  one  that  he  borrowed  money  of;  generally 
they  did  not  have  any  money. 

Question.  What  was  the  inducement  on  his  part? 

Answer.  I  liked  him  very  well  ;  we  elevated  him  in  politics  pretty  well ;  I  did 
not  mind  lending  him  a  little  money. 

Question.  Were  there  any  other  personal  considerations  at  all  in  the  matter  ] 

Answer.  No,  sir;  he  used  often  to  say,  "I  want  $200,"  and  I  would  let  him 
have  a  check  for  it. 

Question.  Did  he  ever  say  what  he  wanted  this  money  for  ? 

Answer.  I  suppose  he  had  extravagant  expenses  to  meet;  he  used  to  say  he 
had  some  bills  to  pay  or  some  note  to  meet. 

Question.  Did  he  ever  hold  out  to  you  any  inducement  or  any  special  advan- 
tage why  he  wanted  this  money  ? 

Answer.  At  the  time  of  the  last  $500  I  think  he  told  me  he  wanted  to  buy 
some  stock  that  day,  and  he  must  have  it;  so  I  gave  him  a  check,  and  in  about 
two  weeks  he  gave  me  a  return  check  for  $400.  1  think  it  was  a  return  draft 
from  his  father,  in  Rhode  Island^  which  I  deposited,  and  he  owed  me  the  other 
$100.    At  that  time  he  probably  owed  me  $500  or  $600. 

Question.  Do  you  know  whether  it  was  Mr.  Palmer's  habit  to  require  pay  for 
making  appointments  or  recommendations  for  appointment  ? 

Answer.  I  do  not. 

Question.  Was  it  his  habit  to  require  his  appointees  to  divide  their  salaries 
with  him  ? 

Answer.  I  never  heard  of  any  such  case. 

Question.  He  never  made  any  such  suggestion  to  you? 

Answer.  Never  in  his  life. 

H.  Rep.  Com  111  10 


14G 


NEW   YORK  CUSTOM  HOUSE. 


Question.  Nor  said  to  you,  "Here,  you  can  afford  to  loan  me  this ;  I  will 
obtain  your  appointment  for  you?" 

Answer.  No,  sir.  He  had  a  cousin  employed  there  who,  he  said,  owed  him 
a  great  deal  of  money;  that  he  would  not  pay  him,  but  would  pay  a  stranger; 
so  this  man  gave  me  $30  on  the  first  of  the  month,  and  Palmer  told  me  to  keep 
this  and  give  him  credit  on  what  he  owed  me. 

By  Mr.  Rollins: 

Question.  When  you  found  that  Palmer  did  not  pay  the  money  he  borrowed — 
that  his  indebtedness  to  you  was  increasing  steadily,  why  did  you  continue  to 
loan  him  if  there  was  no  inducement  held  out  to  you  for  doing  so  ? 

Answer.  I  used  to  hate  refusing  him. 

Question.  You  are  pretty  generous  ? 

Answer.  He  is  not  the  first  man  I  have  been  generous  to.  He  used  to  say, 
"Smalley,  let  me  have  $200;  I  will  make  it  right  in  a  few  days,"  and  I  would 
give  him  a  check  for  it. 

Question.  Do  you  mean  to  say  that  you  have  received  no  return  for  that 
money,  directly  or  indirectly,  through  the  instrumentality  or  influence  of  Mr. 
Palmer  ? 

Answer.  Yes,  sir,  I  do. 

Question.  None  whatever? 

Answer.  None  whatever  for  the  money. 

Question.  Do  you  mean  to  swear  that  you  did  not  take  into  account  in  the 
loaning  of  this  money  to  Palmer  the  fact  that  you  were  securing  the  appoint- 
ment of  some  twenty  of  your  friends  ? 

Answer.  These  men  were  recommended  by  the  general  organization. 

Question.  Did  you  not  think  that  it  would  help  along  their  appointment  when 
you  loaned  Palmer  this  money  ? 

Answer.  This  money  has  been  all  loaned  since  the  1st  of  January,  1S63; 
these  men  were  appointed  before. 

By  Mr.  Le  Blond  : 
Question.  What  were  Palmer's  circumstances  ? 
Answer.  He  was  a  clerk  in  the  custom-house  at  $1,500. 

Question.  Was  his  salary  his  only  source  of  living,  and  his  only  means  of 
paying  you  back  again  ? 

Answer.  He  had  commissions  on  the  collections  for  the  party.  They  collected 
so  much  every  year  from  the  custom-house,  and  I  believe  he  used  to  receive  a 
per-centage  on  the  full  amount  that  was  collected.  I  thought  when  he  was 
coll*  cting  last  November  or  December  that  he  would  pay  me  back  what  he 
owed  me ;  he  owed  me  then  $600  or  $700,  but  he  did  not  do  it. 

By  Mr.  Rollins  : 

Question.  You  say  that  some  20  men  in  the  17th  ward  were  appointed  to 
office  on  your  recommendation  and  the  recommendation  of  other  men  in  that 
ward ;  did  any  one  of  these  20  men  ever  pay  you*directly  or  indirectly,  any  money 
or  other  valuable  consideration  for  your  influence  in  securing  their  appointment? 

Answer.  Most  of  them  owed  me  money ;  were  poor  devils  who  had  no  money 
to  pay  rents  ;  they  were  the  best  working  politicians  in  my  ward. 

By  Mr.  Le  Blond : 

Question.  What  business  did  Palmer  follow  before  he  went  into  the  custom- 
house ? 

Answer.  I  never  knew  him  before  he  went  to  the  custom-house. 
Question.  Do  you  know  whether  he  is  a  professional  man  ? 
Answer.  I  have  understood  that  he  was ;  that  he  passed  examination  as  a 
lawyer. 


NEW  YORK  CUSTOM  HOUSE. 


147 


By  Mr.  Rollins  : 

Question.  Where  did  Palmer  live  during  liis  term  of  office  in  the  custom- 
house ? 

Answer.  lie  lived  in  the  17th  ward. 
Question.  Did  he  board  at  a  hotel  ? 

Answer.  When  J  first  knew  him  he  boarded  at  private  houses,  and  was  after- 
wards at  a  private  hotel. 

Question.  Was  his  mode  of  living  expensive  1 
Answer.  More  expensive  than  mine. 
Question.  Did  he  keep  horses  1 

Answer.  No,  sir;  he  used  to  drive  mine  ;  I  generally  kept  three.  Sometimes 
he  would  take  his  wife  out  with  him,  and  get  my  team,  and  sometimes  he  would 
take  a  single  horse ;  he  left  my  ward  and  lived  at  the  Metropolitan  Hotel. 

Question.  How  long  since] 

Answer.  Probably  in  August  or  September  last. 
Question.  Upon  what  terms  did  he  live  there  ? 
Answer.  He  told  me  he  paid  $35  a  week. 
Question.  What  was  his  salary,  do  you  say  ? 

Answer.  $1,500  a  year ;  and  he  used  to  have  his  commissions,  (2J  per  cent.) 
Palmer  also  had  a  sort  of  arrangement  with  Smith,  who  was  elected  super- 
visor, Smith  holds  a  very  lucrative  place  as  one  of  the  collectors  of  assess- 
ments, (there  are  five  or  six  of  them,)  which  is  worth  from  $5,000  to  $10,000  a 
year.  Mr.  Palmer's  influence  was  such  that  he  could  give  almost  anybody  the 
nomination  of  supervisor  at  that  time,  and  Smith  wanted  it,  and  I  said  to  Palmer 
one  day,  44  Palmer,  if  you  can  get  that  place  of  Mr.  Smith  for  me  we  will  go 
in  for  him  as  supervisor,  and  I  will  divide  with  you".  The  suggestion  was 
made  to  Smith,  and  he  approved  of  it.  When  he  saw  Cornell,  the  street  com- 
missioner, and  told  him  what  could  be  accomplished,  Cornell  told  him  he  could 
not  stand  me,  and  he  had  better  make  some  other  arrangement.  Although 
Cornell  and  I  agree  together,  he  does  not  like  to  put  me  into  politics.  So 
Smith  came  back  and  told  Palmer,  and  it  was  understood  that  the  arrangement 
could  not  be  completed  so  far  as  I  was  concerned.  He  made  some  arrange- 
ment, I  don't  know  what,  exactly,  except  that  I  know  that  Palmer  told  me 
he  had  made  an  arrangement  by  which  Smith  was  to  pay  a  per-centage  on  the 
other  place  which  he  was  to  hold;  that'  he  was  to  be  collector  of  assessments 
under  the  democratic  street  commissioner,  and  also  be  republican  supervisor. 
Palmer  told  me  that  Smith  was  to  give  a  certain  amount  of  money  out  of  the 
collector's  assessment  fee  as  per-centage.  I  understood  afterwards,  from  outside* 
parties,  that  it  was  half;  Palmer  was  to  get  half  of  Smith's  assessment  fees. 
One  day  I  knew  Palmer  had  a  thousand  dollar  note  of  Smith's,  and  he  wanted 
me  to  discount  it.  I  told  him  I  had  not  the  money.  I  asked  him  how  he  came  to 
get  that  from  Smith,  and  he  said  that  was  a  part  of  their  arrangement  about 
the  supervisorship.  I  judged  that  was  a  certain  proportion  of  his  per-centage. 
1  think  from  the  time  he  £ot  the  nomination  this  arramrement  was  to  sro  on. 

By  Mr.  Le  Blond  : 

Question.  You  speak  of  Palmer  as  collecting  a  certain  per-centage  from 
custom-house  officers,  was  this  per-centage  a  part  of  the  consideration  for  the 
procurement  of  their  offices,  or  was  it  an  assessment  for  party  purposes  1 

Answer.  It  was  for  party  purposes — made  by  the  State  committee. 


148 


NEW   YOU  K   (TSTOM  HOUSE. 


Testimony  of  Albert  M.  Palmer. 

Fort  Lafayette,  March  19,  1S64. 
Albert  M.  Taliiier  sworn  and  examined. 

By  the  chairman  : 
Question.  Permit  me  to  ask  you  your  age. 
Answer.  I  am  2G  the  27th  of  next  July. 
Question.  Of  what  State  are  you  a  native  ? 
Answer.  Connecticut. 

Question.  How  long  have  you  been  in  the  State  of  New  York  ? 

Answer.  I  came  here  last  in  1859;  my  father  formerly  resided  at  Syracuse; 
he  lived  there  four  years,  then  returned  to  Connecticut,  and  to  Rhode  Island  ;  I 
came  to  New  York  city  in  1859. 

Question.  What  was  your  business  on  first  coming  to  this  city  ? 

Answer.  I  was  a  student  at  law;  I  came  here  to  enter  the  Law  University. 

Question.  Did  you  graduate  there  ? 

Answer.  Yes,  sir.  After  I  graduated  there  I  went  into  the  office  of  Hawlev 
&  Glover,  No.  42  Pine  street,' where  I  remained  until  I  went  into  the  custom- 
house.   I  think  I  was  in  their  office  about  a  year  and  a  half. 

Question.  When  did  you  go  into  the  custom-house  ? 

Answer.  In  May,  1861. 

Question.  Through  whom  did  you  receive  your  appointment  there  ? 

Answer.  I  suppose  it  was  through  Mr.  Opdyke;  I  was  a  class-mate  of  his 
son  in  college,  and  an  intimacy  sprang  up  between  us.  Mr.  Opdyke  introduced 
me  to  Mr.  Barney  in  a  note  which  secured  my  appointment;  my  appointment, 
in  the  first  instance,  was  a  temporary  one.  Mr.  Barney  found  a  large  number 
of  applications  for  appointments  accumulating  upon  his  hands,  and  the  idea 
suggested  itself  to  him  to  select  a  certain  number  of  persons  in  whom  he  could 
confide  to  file  these  applications,  and  to  answer,  as  far  as  might  be,  the  questions 
of  the  great  crowd  that  were  besieging  him  at  that  time.  He  selected  five  per- 
sons for  temporary  appointment,  and  got  authority  from  the  Secretary  of  the 
Treasury  to  appoint  these  five  persons,  of  whom  I  was  one.  Mr.  Barney  selected 
me  from  the  five  for  the  duties  which  I  have  since  performed. 

Question.  What  were  those  duties  ? 

Answer.  I  had  no  regular  designation  in  the  custom-house.  I  was  the  col- 
lector's private  clerk.  There  is  no  such  office  known  to  the  customs  register  as 
private  secretary.  I  did  once  call  myself  private  secretary,  and  Mr.  Barney 
reprimanded  me  for  it,  and  I  never  did  so  afterwards.  I  attended  to  the  mat- 
ter of  filing  applications  for  appointments,  writing  letters,  and  looking  after  the 
cases. 

Question.  How  long  did  you  occupy  that  position? 

Answer.  I  really  occupied  it  until  my  arrest.  I  was  appointed  in  May,  1861, 
and  was  arrested  about  two  and  a  half  months  ago.  Mr.  Stanton  and  myself  at 
one  time  occupied  rooms  together;  I  was  nominally  Mr.  Stanton's  chief  clerk, 
and  I  was  so  put  upon  the  register,  but  I  had  really  nothing  to  do  whatever 
with  his  business. 

Question.  How  long  after  entering  the  custom-house  was  it  before  you  oc- 
cupied the  room  with  Mr.  Stanton  ? 

Answer.  We  had  a  room  for  this  business  I  speak  of  in  the  old  custom-house 
by  ourselves,  and  when  Mr.  Stanton  took  his  bureau  he  wanted  a  better  room 
than  the  one  he  had,  and  Mr.  Barney,  having  no  other  room,  assigned  him  ours 
and  gave  me  a  desk  in  it.  I  think  this  was  about  five  months  after  my  appoint- 
ment when  1  took  a  desk  in  Mr.  Stanton's  room. 


NEW  YORK  CUSTOM  HOUSE. 


140 


Question.  Was  Mr.  Stanton  at  that  time  at  the  head  of  what  1  should  term 
the  bond  bureau  ? 

Answer.  Mr.  Stanton  was  appointed,  when  Mr.  Barney  took  office,  to  what 
was  called  the  seizure  bureau,  which  had  cognizance  of  all  matters  pertaining 
to  seizures  of  goods  for  fraudulent  entries,  or  contraband  goods,  or  anything  of 
that  sort;  and  then  when  the  question  of  trade  to  restricted  port-  contiguous  to 
the  southern  States  came  up,  it  seemed  most  natural  for  Mr.  Barney  to  turn 
that  business  over  to  Mr.  Stanton's  bureau,  as  it  was  a  sort  of  a  legal  bureau 
(the  seizure  business  being  more  or  less  of  a  legal  character.)  Mr.  Barney 
turned  over  the  business  of  dealing  with  these  shipments  to  these  ports  to  Mr. 
Stanton,  so  far  as  the  matter  of  taking  the  bonds  was  concerned,  which  were 
made  requisite  by  the  Treasury  Department.  Mr.  Stanton  had  nothing  to  do 
with  the  clearances  of  vessels;  his  simple  business  was  taking  the  bonds. 

Question.  Was  he  in  the  discharge  of  this  business  when  you  had  a  desk  in 
his  room  ? 

Answer.  Yes,  sir. 

Question.  After  you  were  designated  as  his  clerk,  did  you  have  anything  to 
do  with  the  making  the  bonds  and  filling  them  up  ? 

Answer.  No,  sir;  not  enough  to  speak  of.  I  suppose  that  sometimes  in  Mr. 
Stanton's  absence  1  may  have  done  something  relative  to  the  bond  business, 
but  only  in  his  absence — not  enough  really  to  speak  about. 

Question.  At  this  time  was  young  Stanton  there  ] 

Answer.  Yes,  sir;  as  his  father's  clerk. 

Question.  He  was  more  particularly  in  charge  of  the  bonds  than  yourself  ? 

Answer.  Yes,  sir;  he  was  a  mere  boy;  he  had  no  discretion  in  the  matter. 
I  do  not  think  that  I  was  ever  really  Mr.  Stanton's  chief  clerk.  I  was  nomi- 
nally, at  a  later  date,  Mr.  Hanscom's  chief  clerk.  Mr.  Wardell  was  Mr.  Stan- 
ton's chief  clerk.  I  was,  however,  in  Mr.  Stanton's  division,  and  registered  in 
his  division,  and  in  the  room  with  him. 

Question.  How  long  were  you  in  the  room  with  him  ? 

Answer.  I  suppose  for  a  year  and  a  half,  both  at  the  old  custom-house  and 
at  the  new;  perhaps  two  years. 

Question.  You  often  saw  parties  come  there  and  execute  bonds  both  as  prin- 
cipals and  sureties  ] 

Answer.  Yes,  sir;  every  day. 

Question.  Who  filled  out  the  bonds  % 

Answer.  As  a  usual  thing  they  were  filled  out  in  the  outer  office  by  young 
Stanton. 

Question.  He  did  not  have  a  desk  in  that  room] 

Answer.  No,  sir;  in  the  outer  room — a  sort  of  ante- room  ;  he  never  had  a 
desk  in  the  room  with  his  father,  neither  in  the  old  custom-house  nor  the  new. 

Question.  You  say  young  Stanton  was  a  mere  boy,  and  had  no  discretion  in 
the  matter  :  who  gave  any  directions  about  the  filling  in  the  bonds  % 

Answer.  His  father,  I  suppose. 

Question.  The  parties  came  in  contact  with  Mr.  Stanton;  ascertained  from 
him  what  the  character  of  the  bonds  to  be  given  was ;  Mr.  Stanton  called  Cady 
Stanton  in  to  give  him  directions,  and  when  they  came  to  be  formally  executed 
the  parties  came  before  the  father  to  justify  ? 

Answer.  Yes,  sir. 

Question.  And  he  as  notary  took  a  fee  of  f>0  cents  ? 
Answer.  Yes,  sir. 

Question.  Did  you  ever  see  any  other  fee  than  that  paid  ? 
Answer.  No,  sir. 

Question.  For  drawing  up  any  papers  connected  with  the  bonds  ? 
Answer.  I  have  heard  Mr.  Stanton  say  that  he  took  a  paper  home  with  him 
for  which  he  got  $5,  or  something  of  the  sort.    I  never  saw  any  money  paid. 


J  50  NEW  YORK   CUSTOM  HOUSE. 

Question.  Did  he  say  what  was  the  paper  he  took  home  ? 

Answer.  It  was  a  bond  of  some  kind,  extraordinary  in  its  character,  which 
required  more  labor  than  the  usual  bond,  and  I  understood  that  the  shipper, 
rather  than  pay  a  lawyer  tor  it,  paid  it  to  Mr.  Stanton. 

Question.  I  suppose  that  the  requisitions  of  the  bonds  must  have  been  often 
discussed  before  you  between  Mr.  Stanton  and  the  parties  applying  ? 

Answer.  Yes,  sir. 

Question.  Do  you  know  what  Mr.  Stanton  required  of  the  parties  giving  the 
bonds  ? 

Answer.  I  think  he  required  a  justification  in  real  estate. 

Question.  Suppose  they  could  not  justify  in  that  respect,  what  was  done  then  ? 

Answer.  Then,  I  take  it,  they  were  rejected.  The  most  I  know  about  it  is, 
that  on  one  or  two  occasions,  when  Mr.  Stanton  was  in  Washington,  he  wanted  I 
should  take  the  justifications.  I  know  that  I  refused  half  a  dozen  who  applied. 
1  made  one  or  two  parties  very  mad  because  I  would  not  take  two  members  of 
a  firm — take  their  individual  securities — but  I  supposed  I  was  carrying  out  the 
same  programme  which  he  carried  out.  If  I  remember  right,  I  think  that  the 
bond  itself  has  an  affidavit  or  some  sort  of  form  attached  to  it,  which  required 
the  parties  themselves  to  swear  that  they  owned  so  much  real  estate. 

Question.  Did  you  ever  see  or  know  of  a  variation  in  the  acceptance  of  par- 
ties who  did  or  could  not  justify  in  any  way? 

Answer.  I  never  knew  of  any  such  case. 

Question.  Do  you  know  of  any  consideration  being  offered,  talked  of,  or  ten- 
dered, to  induce  the  acceptance  of  a  bond  without  this  compliance  ? 

Answer.  No,  sir ;  I  never  heard  of  such  a  thing. 

Question.  Do  you  know  of  any  such  thing  being  done  at  any  time  1 

Answer.  No,  sir  ;  I  ought  to  say  here,  that  although  1  was  in  the  office  of 
Mr.  Stanton,  and  sat  right  opposite  to  him,  yet  my  business  was  of  such  a 
character,  and  his  business  was  of  such  a  character,  that  I  might  carry  on  mine 
for  months,  and  he  his  for  months,  and  he  might  not  know  much  about  mine, 
and  I  might  not  know  much  about  his,  for  the  reason  that  there  was  always  a 
great  crowd  in  the  office.  There  was  not  probably  a  room  in  the  building  that 
begun  to  be  so  crowded  as  ours  was.  Mr.  Barney  sent  to  me  usually  for  the 
filing  of  their  papers,  and  to  talk  with  them,  the  persons  who  were  applying  for 
office.  It  was  my  business  to  answer  them,  and  to  do  wThat  I  could  to  satisfy 
their  claims,  and  especially  to  take  charge  of  their  papers  and  see  that  every 
thing  was  right.  I  suppose  that  I  had  twenty  or  thirty  men  besieging  me  every- 
day, who  were  referred  to  me  by  Mr.  Barney,  who  stated  their  cases  and  the 
matter  of  their  applications  to  me.  When  I  was  not  so  occupied,  if  Mr.  Barney 
wanted  to  know  anything  in  reference  to  a  particular  case,  or  wanted  anything 
written  of  a  confidential  character,  he  would  send  for  me.  I  might  be  in  this 
way  called  out  of  my  room  a  dozen  times  in  an  hour.  All  this  conspired  to  put 
me  in  a  position  where  I  could  not  necessarily  observe  Mr.  Stanton's  business. 

Question.  Were  there  not  frequently  delays  in  the  way  of  getting  securities  1 

Answer.  I  think  there  were  ;  I  cannot  swear  positively  to  that. 

Question.  Did  you  not  yourself  go  upon  any  of  these  bonds  % 

Answer.  No,  sir ;  except  in  one  instance. 

Question.  Whose  was  that  ? 

Answer.  The  instance  was  this :  Old  Mr.  Wykoff,  whom  I  have  known  for 
several  years — a  man  of  wealth,  living  in  the  fifth  ward,  a  politician  and  a  re- 
publican, had  a  small  shipment  of  some  five  hundred  dollars,  and  I  signed  the 
bonds  for  him.  I  wras  under  the  impression  that  the  shipment  was  to  Norfolk, 
and  under  a  government  permit,  and  so  testified  before  the  military  commis- 
sion, but  they  informed  me  the  other  day  that  it  was  a  shipment  for  Matamo- 
ras ;  I  signed  the  bonds  under  the  impression  that  it  was  for  Norfolk.  This 
was  more  than  nine  months  or  a  year  ago.    Mr.  Wykoff  came  into  my  room 


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one  day,  (this  was  after  I  left  Stanton's  room,)  and  said,  "  Palmer,  Mr.  Stanton 
will  not  allow  me  to  go  upon  this  bond  myself;  it  is  only  a  matter  of  a  few 
hundred  dollars  at  any  rate ;  he  wants,  as  a  mere  matter  of  form,  that  there 
should  be  a  second  name  on  it ;"  he  said  that  the  bond  was  four  or  five  hundred 
dollars,  and  the  shipment  was  about  two  hundred  and  fifty  dollars.  "  Well," 
says  I,  "I  guess  I  am  worth  five  hundred  dollars,  and  I  will  go  upon  it.  if  there 
is  nothing  improper  in  it,  and  Mr.  Stanton  says  it  is  all  right."  1  went  in  and 
signed  the  bond  as  a  mere  matter  of  form — Mr.  Wykoff  being  worth  two  or 
three  hundred  thousand  dollars — as  I  knew  that  the  government  could  receive 
no  detriment  from  it.  I  see  now  under  the  regulations  that  it  was  improper, 
but  I  did  not  reflect  upon  it  at  the  time  that  there  was  anything  improper  in  it. 

Question.  Was  that  the  only  bond  you  signed  ? 

Answer.  Yes,  sir. 

Question.  Did  you  have  anything  to  do  in  negotiating  with  parties  to  go  as 
sureties  upon  bonds'? 

Answer.  Mr.  Benjamin  came  into  my  office  one  day,  (I  had  known  him  for 
some  time,)  and  said  he  had  a  shipment  of  goods  already  made,  had  expected 
his  surety,  but  he  had  not  come  to  hand,  and  he  wanted  to  know  if  I  could 
obtain  a  surety  for  him  among  some  of  my  friends.  I  told  him  I  did  not  know, 
but  I  would  see ;  I  stepped  out,  asked  one  or  two,  could  not  get  any  one ;  came 
back  again,  and  he  said  if  I  could  get  some  one  before  three  o'clock  in  the 
afternoon  it  would  be  just  as  well;  and  he  said  as  he  was  going  out  of  the  door, 
"I  will  give  one  bundled  dollars  to  any  one  that  will  go  on  the  bond."  I  went 
out  and  found  Captain  Barnes,  another  old  friend  of  mine,  a  wealthy  man,  who 
lived  in  the  5th  ward,  and  I  asked  if  he  would  go  upon  that  bond,  and  he  said 
"certainly,  if  it  is  all  right."  I  said"  I  have  no  doubt  it  is  all  right,  as  1  have 
known  Benjamin  for  some  time."  Mr.  Barnes  came  up  and  signed  the  bond. 
The  next  day  Benjamin  sent  me  a  check  for  one  hundred  dollars,  and  I  offered 
it  to  Mr.  Barnes,  but  he  refused  it,  and  I  returned  it  to  Benjamin. 

Question.  Was  that  the  only  bond  you  negotiated  a  surety  or  signer  for  ? 

Answer.  Yes,  sir. 

Question.  How  long  had  you  known  Benjamin? 

Answer.  I  suppose  a  year. 

Question.  What  was  his  business  ? 

Answer.  A  shipper  or  commission  merchant,  T  think. 

Question.  Did  you  know  at  the  time  where  these  goods  were  to  be  shipped  ? 
Answer.  No,  sir. 

Question.  You  told  Mr.  Barnes  that  it  was  all  right  ? 

Answer.  I  knew  that  Mr.  Benjamin  was  shipping  goods  to  a  port  where  bonds 
were  required,  but  I  did  not  know  to  what  port  those  goods  were  going.  I  knew, 
of  course,  that  it  was  to  a  restricted  port,  from  the  fact  that  a  bond  was  re- 
quired. I  am  not  sure  whether  the  check  was  for  one  hundred  dollars,  or  one  hun- 
dred and  fifty  dollars,  but  I  think  it  was  one  hundred  dollars. 

Question.  Did  you  and  Mr.  Smalley  have  any  transactions  about  bonds  ? 

Answer.  No,  sir ;  I  had  none  with  him. 

Question.  Did  he  have  any  with  you  ? 

Answer.  Never;  I  knew  he  was  going  on  Mr.  Benjamin's  bonds  ;  he  told  me 
he  was,  and  he  asked  my  advice  about  it,  but  I  had  no  transactions  with  him 
relative  to  it. 

Question.  Did  you  receive  anything  other  than  what  you  have  spoken  of 
for  procuring  this  Captain  Barnes's  signature  ? 
Answer.  No,  sir;  received  nothing  for  it. 

Question.  What  was  the  nature  of  the  money  transactions  betwixt  yourself 
and  Benjamin  ? 

Answer.  I  borrowed  money  of  Benjamin,  but  I  have  returned  every  cent 
that  I  ever  borrowed  of  him.    Atone  time  I  kept  a  very  small  bank  account, 


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NEW  YORK  CUSTOM  HOUSE. 


and  once  in  a  while  my  bank  account  would  not  be  exactly  square,  and  T  would 
want  to  make  it  up,  or  something  of  the  sort,  and  I  would  send  down  to  Benja- 
min a  check  dated  two  or  three  days  ahead,  and  he  would  give  his  check  dated 
that  day,  and  that  would  be  the  money  I  would  borrow  of  him;  by  and  by, 
when  my  check  matured,  he  would  use  it. 

Question.  What  was  the  nature  or  cause,  betwixt  you  and  him  to  induce  him 
to  lend  you  his  check  ? 

Answer.  People  around  the  custom-house,  perhaps  more  than  anywhere  else, 
are  given  to  borrowing  and  lending  money. 

Question.  Is  there  not  usually  some  consideration  for  these  favors'? 

Answer.  There  may  be  ;  I  don't  know  that  there  is.  There  was  not  in  this 
instance. 

Question.  Was  there  not  in  any  instance  connected  with  Benjamin  giving  you 
his  checks? 

Answer.  None  so  far  as  I  was  concerned. 

Question.  How  was  it  between  you  and  Mr.  Smalley  in  this  respect  ? 

Answer.  I  borrowed  money  of  Smalley;  Mr.  Smalley  and  myself  have  been 
very  intimate,  personal  friends.  I  have  lived  in  his  ward,  and  he  has  been  a 
sort  of  controlling  man  there. 

Question.  Was  there  never  any  consideration  in  these  matters,  other  than  of 
friendship,  betwixt  you  and  Mr.  Smalley  ? 

Answer.  No,  sir. 

Question.  To  turn  to  another  subject  for  a  moment,  do  you  know  of  Smalley, 
Benjamin,  Eneas,  or  Rahining  using  money  to  procure  sureties  or  principals  to 
other  bonds  ? 

Answer.  No,  sir  ;  I  know  nothing,  of  my  own  knowledge.  I  don't  know 
anything,  in  regard  to  any  particular  individuals,  in  this  respect,  except  by 
hearsay.  I  know  it  has  been  a  matter  of  talk  about  the  custom  house  that  it 
was  a  common  thing  for  parties  to  pay  for  sureties  ;  but  I  know  nothing  as  to 
particular  instances. 

By  Mr.  Le  Blond  : 

Question.  Do  you  know  anything  about  it  from  the  parties  in  interest  ? 

Answer.  No,  sir. 

By  the  chairman : 

Question.  Did  you  hear  any  parties,  who  were  shippers,  say  that  they  had 
paid,  or  must  pay,  money  to  get  their  goods  through;  or,  in  plain  words,  that 
they  had  facilities  for  getting  goods  through  the  custom-house,  meaning  by 
that  they  knew  how  it  was  done,  or  how  they  could  do  it  ? 

Answer.  No,  sir. 

Question.  Did  any  one  ever  come  to  you  with  such  a  proposition? 

Answer.  No,  sir;  people  have  been  to  me  a  thousand  times,  I  suppose,  rela- 
tive to  all  sorts  of  schemes  for  making  money,  from  selling  appointments  up  to 
shipping  liquors  to  New  Orleans,  or  shipping  contraband  goods  to  Matamoras 
and  elsewhere.  All  tjiese  things  were  flying  about.  Everybody  was  talking 
about  them  and  proposing  them,  but  only  in  a  general  way  ;  nobody  talked  to 
me  particularly  about  any  such  things.  Mr.  Denison  told  me  that  a  broker 
made  a  proposition  to  him  (this  was  quite  early)  to  ship  5,000  muskets  to 
Mexico — to  clear  them  from  this  port.  Of  course,  a  clearance  of  muskets  to 
Mexico  has  always  been  contraband.  Mr.  Denison  wanted  I  should  see  the 
broker,  and  put  up  a  sort  of  job  (to  use  his  own  expression)  upon  the  broker, 
by  leading  him  to  suppose  that  he  could  get  a  clearance  and  make  the  shipment, 
and  then  come  down  upon  him  and  seize  the  whole  shipment.  The  broker 
came  to  see  me  once,  but  I  did  not  pay  any  attention  to  it,  and  it  dropped 
through.  That  is  the  only  instance  that  1  remember  of  anything  being  said  to 
me  particularly  in  relation  to  such  a  matter. 


NEW  YORK  CUSTOM  HOUSE. 


153 


By  Mr.  Le  Blond  : 

Question.  Who  was  this  broker? 
Answer.  I  think  his  name  was  Culver. 
Question.  Does  he  live  in  New  York  ? 
Answer.  Yes,  sir. 

By  the  eh  airman  : 

Question.  There  were  charges  preferred  against  you,  Mr.  Palmer,  some  time 
ago,  and  in  Mr.  Andrews's  hands,  which  were  suppressed.  Can  you  tell  me 
what  were  those  charges,  and  why  they  were  suppressed  ? 

Answer.  No,  sir;  this  is  the  first  time  I  ever  heard  of  them.  I  will  say  here 
that  this  is  the  fourth  investigating  committee  that  has  sat  upon  the  case  of  my 
insignificant  self — once  Mr.  Jordan,  once  Mr.  Brown,  special  agent  of  the  Trea- 
sury Department,  then  the  military  commission,  and  now  your  honorable  com- 
mittee from  the  House  of  Representatives. 

Question.  Our  business  is  not  to  find  proof  against  you ;  what  we  want  is  to 
protect  the  government  by  exposing  villanies  and  catching  the  villains. 

Answer.  Yes,  sir;  as  I  was  going  to  say,  that  was  the  only  time  when  a 
direct  proposition  of  this  kind  was  made  to  me,  and  I  supposed  it  was  made  in 
good  faith.  I  l*ave  no  reason  to  suppose  that  Mr.  Denison  did  not  really  wish 
to  catch  the  pan-ties.  I  think  he  wanted  to  set  a  sort  of  smart  trap  for  those 
who  were1  disposed  to  make  contraband  shipments.  I  gave  to  the  military  com- 
mission— I  don't  know  whether  they  have  acted  upon  it  or  not — the  loophole 
which  it  seemed  to  me  existed,  if  at  all,  in  the  shipment  of  contraband  goods — 
goods  restricted  by  the  department.  I  don't  think  that  they  have  directed  their 
attention  to  the  right  point.  Mr.  Stanton  had  no  power  to  clear  any  goods. 
The  clearance  of  all  sorts  of  contraband  goods,  if  there  was  any  clearance  of 
such  goods,  was  effected  in  another  bureau  than  his,  viz.,  the  bureau  called  the 
clearance  bureau,  presided  over  by  Mr.  Embree.  Perhaps  I  had  better  give  you 
the  whole  history  of  the  way  goods  are  cleared,  so  far  as  I  know.  The  know- 
ledge I  have  of  it  is  derived  from  general  observation  rather  than  from  any  par- 
ticular study.  When  it  was  found  neeessary  to  restrict  the  shipment  of  certain 
articles  which  we  call  contraband,  to  certain  ports,  the  first  precaution  which 
the  government  took  was  in  this  matter  of  bonds.  A  list  of  what  was  contra- 
band was  furnished  to  the  deputy  collector  ~m  charge  of  the  clearance  bureau. 
Whenever  the  shipper  has  a  shipment  to  make,  he  has,  under  the  regulations  of 
the  revenue  department,  to  put  upon  the  paper  which  is  called  a  manifest  each 
article,  and  has  to  give  a  full  description  of  the  shipment  he  proposes  to  make. 
That  manifest  is  the  first  paper  upon  which  he  applies  for  a  shipment.  He 
takes  it  to  the  clerk  in  charge  of  the  clearance  bureau,  who  passes  it  over  to  the 
manifest  clerk;  the  manifest  clerk  examines  it  with  a  view  to  see  whether  there 
is  anything  wrong  in  it  which  will  come  within  what  is  denominated  contraband 
by  the  regulations  of  the  department.  If  he  finds  nothing  on  the  paper  which 
appears  to  be  contraband,  he  takes  it  to  the  clearance  deputy,  (I  will  not  be 
positive  about  all  the  details,  but  as  to  the  general  matters  I  think  I  am  correct,) 
who  writes  upon  it  "  Bond  required. — G.  W.  E."  Then  the  shipper  takes  the 
bond  to  the  bond  bureau,  and  Mr.  Stanton,  or  whoever  is  in  charge,  takes  it  for 
granted,  seeing  that  check  upon  it,  that  the  manifest  really  and  truly  does  eon- 
tain  a  statement  of  all  the  articles  proposed  to  be  shipped,  and  that  none  of 
them  are  contraband.  That  check  is  to  him  evidence  that  there  are  to  be  no 
contraband  articles  by  this  vessel,  so  far  as  it  can  be  ascertained  by  the  clear- 
ance deputy  or  his  clerks.  The  value  of  the  articles  enumerated  in  tin'  manifest 
is  footed  up,  and,  according  to  the  regulations  of  the  department,  he  takes  a 
bond  in  double  the  amount  of  the  value  of  the  articles  so  proposed  to  be  shipped, 
and  writes  upon  it  "Bond,  given"  with  his  check.    The  shipper  then  takes  the 


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NEW  YORK  CUSTOM  HOUSE. 


manifest  back  to  the  clearance  bureau  ;  the  clearance  deputy  grants  a  clearance, 
and  the  papers  are  all  taken  to  the  naval  office,  where  they  are  examined  again, 
and  are  signed  by  the  deputy  naval  officer,  and  that  effects  a  clearance. 

Then,  in  addition  to  all  this,  it  was  found  necessary  to  have  another  pre- 
caution ;  so  the  Secretary  of  the  Treasury  authorized  the  appointment  of  a  large 
number  of  officers,  to  be  under  the  charge  of  the  surveyor — special  aids — whose 
duty  it  was  to  supervise  the  actual  loading  of  the  vessels.  They  were  fur- 
nished with  probes  for  the  purpose  of  probing  barrels  of  lard  and  everything 
of  that  kind,  and  they  were  directed  to  open  boxes,  so  that  nothing  contraband 
should  be  allowed  to  clear  from  the  port.  It  was  their  duty  to  report  any 
instance  or  attempt  at  contraband  shipment  ;  and  whenever  they  did  report, 
they  made  the  vessel  and  the  cargo  liable  to  seizure,  so  that  contraband  ship- 
ments could  have  only  been  effected  in  one  or  two  ways,  it  seems  to  me :  first, 
by  a  false  manifest  ;  and,  second,  by  collusion  with  the  officer  who  had  charge 
of  the  loading  of  these  vessels.  I  stated  this  to  the  military  commission,  but  I 
do  not  know  whether  they  have  felt  it  incumbent  upon  them  to  inquire  who 
were  these  officers  that  supervise  these  shipments. 

By  Mr.  Le  Blond : 

Question.  We  are  to  understand  by  that,  if  goods  contraband  of  war  were 
shipped  at  all,  it  was  through  the  neglect  or  omission  of  these  officers  under  the 
surveyor  ? 

Answer.  It  seems  so  to  me. 

Question.  What  is  their  title? 

Answer.  They  are  called  special  aids.  These  men  are  appointed  to  act  as  a 
check  if  anything  was  got  through  fraudulently  at  the  custom-house,  or  through 
negligence  or  carelessness.  They  had  the  physical  control  of  this  thing.  What 
was  done  at  the  custom-house  was  mere  paper  business,  which  is  easily  falsified. 

Question.  If  vigilance  was  exercised  by  these  aids,  a  detection  would  be 
brought  about  ? 

Answer.  Yes,  sir;  it  seems  to  me  that  would  follow  as  a  matter  of  course,  • 
because  they  knew  just  as  well  as  the  surveyor  what  was  contraband  or  not; 
they  had  their  lists  of  contraband  articles  furnished  them.   I  think  the  surveyor 
issued  a  general  order,  in  which  he  enumerated  the  contraband  articles. 

By  Mr.  Rollins : 

Question.  How  long  since  is  it  that  these  special  aids  were  appointed  ? 

Answer.  The  first  batch  were  appointed  about  two  years  since ;  I  will  not 
be  positive  whether  they  were  appointed  at  the  same  time  that  these  first 
regulations  went  into  effect — the  restrictions  to  certain  ports. 

Question.  Were  they  appointed  prior  to  these  particular  shipments  to  which 
our  attention  has  been  called? 

Answer.  Yes,  sir,  prior  to  the  shipments  about  which  arrests  have  been 
made ;  they  were  appointed  certainly  two  years  ago. 

By  the  chairman : 
Question.  How  many  of  them  are  there  ? 

Answer.  There  are  about  75  or  100  special  aids ;  I  will  not  be  positive  how 
many  are  assigned  to  that  special  duty. 

By  Mr.  Le  Blond  : 

Question.  Who  had  charge  of  the-  books  where  it  is  alleged  that  these  con- 
traband goods  were  shipped  from — who  of  these  aids  ? 

Answer.  That  I  do  not  know,  but  I  can  tell  you  where  you  can  find  out ; 
Mr.  Andrews  gave  that  business,  I  believe,  to  a  deputy  surveyor  by  the  name 
of  Shirley. 


NEW  YORK  CUSTOM  HOUSE. 


155 


By  the  chairman  : 

Question.  To  go  back  to  the  subject  of  the  bonds,  I  will  ask  you  what  were 
your  relations  with  young  Stanton — intimate  1 

Answer.  No,  sir;  never  saw  him  at  any  time  except  in  the  office;  he  was  a 
boy  in  appearance  and  feeling;  1  am  a  boy  in  appearance,  but  not  in  feeling; 
1  had  nothing  to  do  with  him  one  way  or  the  other. 

Question.  Was  it  during  the  time  that  he  was  abstracting  the  bonds  that  you 
were  in  the  room  with  his  father  I 

Answer.  No,  sir. 

Question.  Was  it  afterwards  ? 

Answer.  I  cannot  tell  when  it  was  he  abstracted  them  ;  I  do  not  know  when 
he  abstracted  them ;  I  can  only  say  that  when  the  matter  came  out  I  was  not 
in  this  room,  and  I  presume  I  was  not  when  he  did  abstract  them. 

Question.  Did  you  know  anything  of  it  until  there  was  a  public  exposure  ? 

Answer.  No,  sir;  the  first  1  heard  of  it  was  in  Washington,  where  I  had 
gone  on  business  for  the  State  central  committee. 

Question.  Do  you  know  of  any  improper  cancellation  of  bonds  by  cutting 
out  the  names,  or  by  writing  the  word  "cancelled"  across  thorn,  or  by  releasing 
or  nullifying  those  bonds  in  an  illegal  manner'?  Do  you  know  whether  Mr. 
Stanton  was  cognizant  of  the  matter  at  all  ? 

Answer.  I  do  not. 

Question.  From  your  knowledge  of  the  rooms,  could  young  Stanton  have  had 
access  to  the  place  where  the  bonds  were  kept  or  deposited  without  his  father's 
knowledge  ? 

Answer.  Yes,  sir. 

Question.  He  filed  all  the  bonds  ? 

Answer.  Young  Stanton  had  the  custody  of  the  bonds  after  they  were 
executed,  and  could  have  done  anything  with  them  he  pleased.  The  whole 
matter  of  keeping  bonds  and  files  of  important  papers  in  the  custom-house  has, 
from  time  immemorial,  been  very  loosely  conducted.  The  most  important 
papers  are  put  up  in  great  glass  cases,  which  are  accessible  to  anybody  who 
choose  to  steal  them;  and  young  Cady  Stanton,  if  he  chose,  could  have  taken 
any  of  these  bonds. 

Question.  It  is  alleged  that  appointments  were  made  to  the  custom-house  by 
money  inducements  in  two  ways  :  first,  by  direct  payment  from  the  applicant 
to  yourself  as  a  prerequisite  ;  and,  second,  by  a  previous  agreement  or  under- 
standing that  a  certain  amount  of  the  salary  should  go  to  you  ;  was  that  thing 
ever  done  ? 

Answer.  It  is  not  so  in  any  particular. 

Question.  A  person  has  sworn  before  us  that  he  paid  you  $250  to  procure  an 
appointment  1 

Answer.  He  has  sworn  to  a  lie. 

Question.  Another  person  has  offered  to  swear,  whose  testimony  we  have  not 
yet  taken,  that  you  required  a  division  of  the  salary  before  he  could  have  an 
appointment. 

Answer.  That  is  also  a  lie. 

Question.  And  that  Mr.  Barney  was  apprised  of  the  fact.  I  do  not  care  any- 
thing about  your  agency  in  the  matter;  but  what  the  committee  would  like  to 
know  is,  whether  that  practice  existed  with  the  knowledge  of  Mr.  Barney. 

Answer.  In  the  first  place,  the  practice  did  not  exist. 

Question.  Do  you  mean  to  say  that  a  thing  of  that  kind  did  not  take  place 
at  all  ? 

Answer.  I  mean  to  say  just  that — that  a  thing  of  that  kind  did  not  take 
place  at  all. 

Question.  Do  you  mean  to  say  that  no  person  was  removed  because  lie  did 
not  pay  { 


156 


NEW  YORK  CUSTOM  HOUSE. 


Answer.  I  do. 

Question.  And  that  Mr.  Barney  did  not  allow  it? 
Answer.  I  do. 

Question.  It  is  most  unqualifiedly  sworn  to.  That  statement  was  made  at 
Washington,  before  us. 

Answer.  It  is  false  in  every  particular. 

Question.  And  that  charges  to  that  effect  were  preferred  against  you;  and 
to  bring  Mr.  Barney's  knowledge  of  this  practice  directly  home  to  him,  that 
they  were  in  the  surveyor's  hands,  (the  committee  have  not  as  yet  inquired  in 
regard  to  them,)  but  were  suppressed,  and  were  not  formally  presented  against 
you.    That  was  several  months  ago. 

Answer.  The  same  charges  were  made  by  Mr.  Brener  in  a  written  commu- 
nication to  the  Secretary  of  the  Treasury — I  will  not  say  these  charges,  but 
charges  tantamount  to  them — and  the  Secretary  of  the  Treasury  thought  it  worth 
while  to  send  a  special  agent  here  to  investigate  the  matter.  The  special  agent 
did  investigate  the  matter,  and  the  result  was  that  Mr.  Brener  wrote  a  letter  to 
the  Secretary  of  the  Treasury,  in  which  he  took  back  everything  he  charged; 
and  as  to  this  thing,  I  have  to  say,  in  the  first  place,  that  the  statement  as  to 
any  money  being  paid  to  me  as  a  consideration  for  the  appointment  is  entirely 
false.  In  the  next  place,  I  have  to  say  this,  as  you  have  referred  to  it:  that  if 
such  a  thing  had  been  true,  and  it  had  come  to  the  ears  of  Mr.  Barney,  1  should 
have  been  removed  at  once. 

Question.  I  am  perfecely  well  aware  that  around  the  custom-house  and  the 
other  public  offices  in  New  York  there  are  certain  peculiar  phrases  resorted 
to  to  conceal  or  disguise  a  matter  whenever  there  is  an  apprehension  that  it  will 
he  inquired  into;  and  when  persons  are  questioned  upon  the  stand,  they  will 
swear  that  things  were  not  so  and  so,  because  the  particular  language  in  which 
the  transaction  was  couched  or  agreed  to  was  not  used. 

Answer.  I  mean  to  say  this :  that  no  man  to  my  knowledge  ever  received  an 
appointment  to  the  New  York  custom-house  for  which  he  gave  a  consideration 
to  me,  either  by  a  present  or  in  any  other  way.  That  is  what  I  mean  to  say. 
So  far  as  Mr.  Barney  is  concerned  (I  don't  know  whether  he  is  on  trial  or  not) 
1  want  to  say  this:  that  Mr.  Barney  would  look  upon  any  such  thing  as  that 
with  perfect  horror,  and  that  it  would  have  caused  my  disgrace  and  removal  the 
instant  it  had  come  to  his  ears. 

Question.  I  may  be  mistaken,  it  is  true,  but  I  have  been  told  that  there  are 
letters  in  his  hands  bringing  the  case  clearly  to  his  knowledge. 

Answer.  I  do  not  know  what  this  thing  may  eventuate  in,  but  I  think  that 
the  man  who  is  charged  with  a  thing  of  that  sort  should,  at  least,  have  the 
privilege  accorded  to  him  of  confronting  those  who  made  such  a  charge  against 
him.  You  must  remember,  gentlemen,  that  positions  in  the  New  York  custom- 
house are  objects  for  which  thousands  and  thousands  of  people,  of  all  sorts  of 
character,  are  striving,  some  of  whom  are  the  most  unscrupulous  set  of  villains 
that  ever  breathed  the  breath  of  life,  and  they  will  do  anything  to  get  places, 
and  to  ruin  those  who  would  be  instrumental  in  displacing  them.  But  this 
charge  is  not  a  new  thing;  it  has  existed  ever  since  I  have  had  anything  to  do 
with  the  custom-house.  I  have  had  a  sort  of  fictitious  reputation  in  connexion 
with  the  New  York  custom-house,  and  it  has  been  supposed  that  1  had  a  good 
deal  of  influence,  and  could  give  away  places  as  I  pleased,  but  it  is  all  false. 

Question.  Mr.  Barney  has  sworn  that  he  devolved  the  responsibility  upon 
you  of  receiving  applications. 

Answer.  He  intrusted  the  filing  of  the  applications  to  me,  but  so  far  as  de- 
ciding upon  their  cases  he  never  left  that  matter  with  me  for  a  moment.  There 
were  thousands  of  men  applying  for  offices  who  wanted  to  see  the  collector, 
who  had  no  prospect  of  an  appointment,  whose  claims  were  not  sufficiently 
strong,  and  whom  it  was  impossible  for  him  to  appoint.    It  was  my  duty  to 


NEW  YORK  CUSTOM  HOUSE. 


157 


see  these  people  and  inform  them  as  to  the  true  state  and  nature  of  their  cases  ; 
in  other  words,  to  relieve  the  collector  of  their  presence.  The  manner  of 
making  the  appointments  was  this.  You  know  all  appointments  made  by  the 
collector  have  to  pass  under  the  supervision  of  the  Secretary  of  the  Treasury 
before  they  amount  to  anything.  The  lists  were  prepared  by  me,  and  Mr. 
Barney  looked  them  over,  inquired  into  the  case  of  each  man,  and  signed  them. 
In  a  majority  of  instances — indeed,  in  the  last  three  years  in  all  instances — 
those  lists  were  prepared  by  Mr.  Barney's  direction.  He  has  made  out  a  list 
of  the  names  of  the  men  whom  he  wanted  to  appoint,  and  I  have  embodied 
them  in  a  letter.  Very  early  in  the  business,  when  Mr.  Opdyke  was  running 
his  machine,  Mr.  Opdyke  had  more  or  less  to  say  about  the  appointments,  and 
when  men  came  properly  indorsed  by  him,  Mr.  Barney  was  willing  to  a  certain 
extent  to  give  them  places. 

Question.  How  was  it  with  reference  to  Mr.  Weed? 

Answer.  Mr.  Weed  never  had  such  influence  or  power. 

Question.  How  comes  it,  then,  that  Mr.  Weed  has  said,  virtually,  that  to  ob- 
tain appointments  in  the  New  York  custom-house,  they  must  pass  through  you? 

Answer.  I  suppose  that  Mr.  Weed  fell  into  the  error  of  everybody  else.  It 
was  true  to  a  certain  extent ;  I  was  the  man  to  remind  Mr.  Barney  of  these 
things  ;  I  kept  them  in  mind  for  him. 

By  Mr.  Le  Blond  : 

Question.  When  these  applications  were  made  to  you,  and  you  made  the  ex- 
amination, did  you  make  a  report  to  Mr.  Barney  approving  or  disapproving  of 
the  appointments  ? 

Answer.  As  a  general  thing,  I  never  made  any  report  at  all. 

By  Mr.  Rollins  : 

Question.  When  recommendations  were  presented  to  you,  was  it  your  duty 
to  make  an  abstract  of  these  papers,  and  present  it  for  the  consideration  of  Mr. 
Barney  ? 

Answer.  No,  sir,  except  in  certain  cases. 

Question.  Y'ou  never  had  any  general  instructions  to  make  an  abstract  of  all 
papers  presented  to  you  ? 

Answer.  No,  sir;  Mr.  Barney  was  never  systematic  about  anything,  as  he 
ought  to  have  been.  Mr.  Barney  is,  in  some  respects,  a  careless  man,  and  he 
was  never  as  systematic  as  I  would  like  to  have  had  him,  or  as  he  ought  to 
have  been.  No  such  thing  was  ever  done  ;  and  that,  perhaps,  is  one  reason 
why  so  much  fault  was  found  with  the  distribution  of  patronage.  Mr.  Barney 
was  fitful.  Sometimes  he  would  feel  as  if  he  must  make  a  large  number  of  ap- 
pointments for  a  certain  class  of  people,  and  he  would  go  to  work  and  make 
appointments.  Then,  again,  he  would  feel  indisposed  to  make  appointments, 
and  sometimes  appointments  would  not  be  made  for  months. 

Question.  You.  say  that  Mr.  Opdyke's  recommendatious  were  usually  listened 
to? 

Answer.  For  a  time. 
Question.  For  what  time? 

Answer.  At  the  time  that  Mr.  Opdyke  was  a  candidate  for  mayor.  Mr.  Bar- 
ney and  Mr.  Opdyke  had  a  conference,  and  Mr.  Barney  was  willing  that  every- 
thing should  be  done  which  could  be,  in  the  way  of  distribution  of  patronage, 
to  assist  Mr.  Opdyke  in  obtaining  his  election. 

Question.  How  was  it  after  his  election  ? 

Answer.  After  his  election  Mr.  Opdyke  and  Mr.  Barney  had  one  of  those 
periodical  splits  and  grievances  which  occur  among  politicians,  and  Mr.  Opdyke 
did  not  ask  anything  from  Mr.  Barney. 


158 


NEW  YORK  CUSTOM  HOUSE. 


Question.  I  will  ask  you  one  other  question;  what  were  your  relations  with 
Isaacs  1 

Answer.  No  official  relation  at  all. 
Question.  Unofficial  ? 

Answer.  No  relation  except  this:  T  might  as  well  say  this,  that  T  have  been 
in  a  position  where  I  have  been  obliged  to  live  beyond  my  means,  (I  had  been 
hoping  for  a  better  office — a  more  remunerative  position,)  and  Mr.  Isaacs  some- 
times borrowed  money  for  me  from  parties.  I  owe  quite  a  considerable  amount 
of  money  now  which  is  the  result  of  that  borrowing,  and  that  is  probably  the 
wickedness  and  foolishness  of  which  I  have  been  guilty,  and  which  has  brought 
this  trouble  upon  me.    Isaacs  had  no  other  connexion  with  me  than  that. 

Question.  What  was  your  salary  per  annum  1 

Answer.  $1,500. 

Question.  Your  expenses  were  beyond  that? 

Answer.  If  I  had  the  opportunity  of  access  to  my  papers  and  to  persons,  I 
could  show  that  my  expenses  beyond  that  were  derived  entirely  from  other 
sources  than  those  pertaining  to  the  New  York  custom-house.  I  understand 
the  position  in  which  I  am  placed.  I  am  a  military  prisoner,  taken  up  without 
a  minute's  warning  from  what  business  I  had,  without  an  opportunity  to  see 
my  wife  ;  seized  in  a  most  summary  way,  and  put  into  this  fort ;  my  faults  and 
failings  all  bl;i zoned  forth  to  the  world  in  a  cruel  and  unjust  manner;  and  I  am 
aware  that,  under  those  circumstances,  I  am  the  object  of  suspicion.  Anything 
that  is  connected  with  me  bears  to  you  at  this  time  a  dark  look,  and  I  know 
that  that  feeling  cannot  but  have  its  influence  upon  the  minds  of  all  who  come  to  see 
me,  and  that  my  answers  to  the  questions  asked  of  me  all  rest  under  the  shadow 
of  that  suspicion.  I  say  here,  unqualifiedly,  that  I  can  show — and  if  I  am 
ever  at  liberty,  I  can  and  will  show  it — where  every  dollar  of  money  I  have 
expended  came  from,  and  that  it  has  been  legitimately  and  properly  expended, 
and  that  it  has  not  come  as  the  committee  seem  to  think  that  it  has. 

By  the  chairman : 

Question.  We  have  had  two  or  three  witnesses  before  us  who  testified  just  so 
about  themselves;  who  acknowledged  that  they  have  erred;  who  have  no  doubt 
that  there  was  wrong  and  iniquity  committed;  but  they  themselves  were  not 
cognizant  of  it,  and  knew  nothing  about  it.  Take  the  case  of  the  Hiawatha 
and  her  cargo.  Some  20,000  or  30,000  dollars'  worth  of  her  cargo,. as  I  under- 
stand, was  positively  taken  off  the  vessel  and  put  ashore,  and  yet  there  is  not 
a  man  who  knows  where  that  cargo  went  to.  It  does  not  seem  to  me  that  this 
bond  business  in  the  blockade  running  could  have  been  going  on  in  the  custom- 
house, and  you  being  connected  with  one  of  the  blockade  runners,  and  yet  you 
know  nothing  about  that  improper  transaction,  and  that  it  was  illicit. 

Answer.  You  say  that  there  is  not  a  shadow  of  doubt  that  I  was  connected 
with  one  of  the  blockade  runners.  I  suppose  you  can  pick  up  fifty  men  within 
gunshot  of  the  office  who  have  had  that  connexion  with  me;  but  it  does  not 
necessarily  follow  that  they  had  that  connexion  with  me  in  the  blockade  busi- 
ness. I  have  never  hesitated  to  say  to  any  one  who  asked  me  just  what  I  have 
stated  to  the  committee.  I  should  not  have  any  hesitation  in  saying  it  to  any- 
body. There  has  been  a  great  fever  raised  about  this  business,  and  I  know 
that  everybody  believes  that  there  are  great  frauds  practiced  in  this  respect;  but 
I  say  solemnly  that,  so  far  as  I  am  concerned,  I  know  nothing  about  anything 
except  what  I  have  stated  to  you.  I  say  very  frankly,  that  if  goods  had  been 
shipped  contrary  to  the  regulations  relating  to  contraband  shipments,  they  must 
have  been  made  under  the  precautions  that  were  instituted  by  the  department, 
by  the  connivance  of  the  custom-house  officers.  I  do  not  hesitate  to  say  that ; 
I  believe  it ;  and  I  have  endeavored,  so  far  as  I  know  anything  about  this 
matter,  to  show  you  how  and  where  these  frauds  take  place. 


NEW  YORK  CUSTOM  HOUSE. 


159 


Question.  In  the  oath  I  administered  to  you,  you  are  aware  that  I  required 
you  to  tell  whatever  you  knew  with  reference  to  any  frauds  or  improprieties  in 
the  New  York  custom-house.  Have  you  any  knowledge  of  frauds  committed,  or 
money  improperly  paid  in  the  shape  of  bribes  or  presents,  in  any  department  of 
the  custom-house  ?  If  you  have  any  such  information,  and  can  give  the  facts 
and  names,  it  certainly  cannot  prejudice  you,  but  it  may  help  us  in  correcting 
abuses  that  do  exist. 

Answer.  So  far  as  I  am  concerned,  nothing  would  prejudice  me.  I  am  just  as 
bad  off  as  I  can  possibly  be — a  prisoner  in  Fort  Lafayette,  disgraced  and  de- 
spised ;  and  if  I  have  no  dread  of  anything  in  the  future,  I  have  no  induce- 
ment to  conceal  anything  from  you.  I  have  endured  as  much  suffering  and 
undergone  as  much  misery  as  any  man  could  wish,  or  expect  one  to  know.  I 
do  not  fear  anything  in  the  future,  and  I  have  no  motive  to  conceal  any  tiling 
from  you,  and  I  do  not  think  there  is  any  necessity  for  the  recommendation  of 
that  to  me,  that  nothing  can  prejudice  me,  because  I  have  no  fear  of  being  preju- 
diced by  anything.  I  say  solemnly,  that  I  know  nothing  more  than  1  have 
told  you. 

By  Mr.  Rollins  : 

Question.  Was  Mr.  Smalley  in  your  office  much? 
Answer.  He  used  to  be  there  very  frequently. 
Question.  For  what  purpose  ? 

Answer.  As  an  acquaintance.  There  were  others  who  were  there  as  fre- 
quently as  he  was. 

Question.  Was  he  there  to  urge  the  appointment  of  certain  parties  to  office  ? 
Answer.  Very  frequently. 

Question.  Was  he  influential  in  securing  appointments  ? 

Answer.  So  far  as  his  ward  was  concerned.  Those  appointments  were  made 
upon  the  representations  of  the  association  of  that  ward. 

Question.  You  say  your  salary  was  $1,500  ;  what  were  your  expenses  per 
annum  ? 

Answer.  Up  to  within  six  months,  I  suppose  my  expenses  were  $1,S00  or 
$2,000  a  year. 

Question.  Do  you  mean. to  say  that  none  of  these  parties  who  secured  ap- 
pointments in  the  custom-house  ever  made  you  any  presents,  directly  or  indi- 
rectly, of  money  or  any  other  valuable  consideration  % 

Answer.  Yes  sir,  so  far  as  anything  of  any  moment  was  concerned.  I  have 
received  canes,  and  once,  I  believe,  my  wife  received  from  Mr.  Smalley  a  $30 
diamond  ring,  or  something  of  that  sort. 

By  Mr.  Le  Blond  : 

Question.  Were  there  not  more  appointments  made  in  the  custom-house  than 
were  necessary  tfi  transact  the  business  ? 
Answer.  No,  sir  ;  I  think  not. 

Question.  Do  you  know  whether  there  have  not  been  recently  a  great  many 
of  these  parties  that  were  in  the  employ  of  the  government  there  discharged, 
because  there  was  no  need  of  them  % 

Answer.  I  do  not  know  ;  there  were  none  up  to  the  time  I  came  here.  I 
have  heard  nothing  from  there  since,  except  indirectly  ;  possibly  there  may 
have  been  some  removed  from  the  public  store. 

Question.  You  said,  I  think,  in  the  commencement  of  your  examination,  that 
your  position  was  not  known  under  the  laws  and  regulations  of  the  custom-house? 

Answer.  No  ;  I  said  that  the  title  of  private  secretary  was  not  known  to  the 
customs  register.    The  collectors  always  had  private  clerks. 

Question.  Had  not  Mr.  Barney  a  private  clerk  aside  from  you  ? 


1G0  NEW  YORK   CUSTOM  HOUSE. 

Answer.  No,  sir;  he  had  a  short-hand  reporter,  who  acted  in  the  capacity  of 
private  clerk. 

Question.  Had  the  office  you  filled  existed  before  Mr.  Barney  became  col- 
lector ? 

Answer.  Yes,  sir. 

Question.  It  always  existed  ? 

Answer.  Yes,  sir,  so  far  as  I  know  anything  of  it. 

Question.  And  the  duty  devolved  upon  it  of  attending  to  the  appointments  ? 

Answer.  Yes,  sir;  usually  the  clerk  who  filled  the  place  took  a  part  in  the 
seizure  business,  but  he  did  it  more  as  the  confidential  clerk  of  the  collector ; 
perhaps  none  of  the  clerkg  of  the  former  collectors  attended  so  exclusively  to 
the  business  of  appointments  as  I  did. 

Testimony  of  Lewis  Benjamin. 

New  York,  April  13,  1S64. 

Lewis  Benjamin  sworn. 

By  the  chairman  : 
Question.  How  old  are  you  ? 
Answer.  Between  39  and  40  years  of  age. 
Question.  How  long  have  you  resided  here  ? 
Answer.  Since  1841  or  1842  ;  was  born  in  Baltimore. 
Question.  What  has  been  your  occupation  here  ? 
Answer.  When  I  first  came  here  I  was  a  clerk. 
Question.  For  whom? 

Answer.  A  man  by  the  name  of  Phillips,  in  Hudson  street.  He  was  engaged 
in  a  loan  office. 

Question.  How  long  did  you  continue  with  him  ? 

Answer.  I  was  with  him  until  1S44 ;  I  was  then  in  business  with  my  father. 

Question.  What  kind  of  business? 

Answer.  Watches  and  watch  materials. 

Question.  How  long  did  you  remain  in  that  business  ? 

Answer.  Until  1846. 

Question.  What  business  did  you  then  engage  in  ? 
Answer.  I  still  continued  in  the  same  business — went  travelling. 
Question.  How  long  did  you  continue  in  that  business  from  the  time  you 
left  your  father? 

Answer.  From  1S46  until  1849  I  was  travelling  with  watches  and  watch  ma- 
terials, although  New  York  was  my  home.  From  1849  I  was  a  traveller  for 
the  house  of  Simons,  Hills  &  Co. 

Question.  How  long  ? 

Answer.  Until  18-53,  when  I  became  the  junior  partner  of  the  firm. 
Question.  How  long  did  you  continue  with  the  house  ? 

Answer.  Until  they  failed  in  1860  ;  after  their  failure  I  went  into  the  ex- 
change and  brokerage  business. 

Question.  How  long  did  you  continue  at  that  ? 
Answer.  Until  the  war  broke  out. 
Question.  And  after  the  war  broke  out  ? 

Answer.  1  continued  in  it  until  the  business  left  me — until  I  had  no  more 
business. 

Question.  Then  what  did  you  do  ? 

Answer.  I  went  into  the,  commission  business. 

Question.  What  branch  of  it  ? 

Answer.  To  execute  orders  for  all  kinds  of  goods.  I  wrote  to  all  my  friends. 
I  lost  everything  when  the  war  broke  out.    I   was  doing  very  well  when  I 


NEW  YORK  CUSTOM  HOUSE. 


1G1 


was  in  the  exchange  and  brokerage  business,  but  I  lost  pretty  much  everything", 
and  I  wrote  to  my  friends  in  England,  Australia,  Canada,  and  Havana,  inform- 
ing them  that  I  proposed  to  go  into  the  commission  business,  and  soliciting  or- 
ders from  them.  I  commenced  the  commission  business,  I  think  it  was  in  July 
or  August,  1861,  and  continued  it  up  to  the  time  of  my  arrest,  which  was  the 
31st  of  December,  1863. 

Question.  During  that  time  where  was  the  principal  portion  of  your  commis- 
sion business  transacted,  and  with  whom? 

Answer.  The  principal  portion  was  with  Canada,  Australia,  England,  and 
Havana. 

Question.  Did  your  orders  extend  beyond  Havana  to  any  of  the  West  India 
islands? 

Answer.  No,  sir. 

Question.  Did  you  receive  any  from  Nassau  ? 

Answer.  Yes,  sir,  1  received  orders  from  Nassau  ;  I  received  two  or  three 
orders  from  Havana — small  orders — through  Mr.  Horfnung,  of  Canada,  who  was 
a  correspondent  of  mine,  and  a  man  for  whom  I  had  done  business  ho-  10  or  15 
years,  to  be  executed  here  and  sent  to  Nassau. 

Question.  "What  was  the  character  of  these  orders? 

Answer.  As  far  as  I  recollect,  these  orders  were  for  whiskey,  tobacco,  pipes, 
boots  and  shoes,  hosiery,  borax,  aud  other  things  that  I  cannot  recollect. 
Question.  They  were  to  be  shipped  where? 
Answer.  From  here  to  Nassau. 
Question.  Were  the  orders  executed  ? 

Answer.  No,  sir,  I  did  not  execute  those  orders  ;  I  wrote  back  for  informa- 
tion ;  I  only  executed  an  order  for  some  boots  and  shoes,  and  hosiery  ;  a  part 
of  the  order  was  executed. 

Question.  Did  you  have  other  orders  from  Nassau,  or  Havana  ? 

Answer.  From  Havana  ;  about  September,  1861,  I  formed  an  engagement 
with  a  house  in  Havana  to  become  their  agent  and  do  their  business  here,  their 
money  business,  and  also  to  execute  orders  for  them. 

Question.  In  the  shipment  of  goods,  or  in  the  fulfilment  of  these  orders  to 
ship  goods  to  these  places,  you  were  required  to  give  bonds  ? 

Answer.  Yes,  sir. 

Question.  And  did  you  give  them? 

Answer.  Yes.  sir. 

Question.  Did  you  ever  have  any  difficulty  in  the  giving  of  these  bonds  ? 

Answer.  I  was  only  called  upon  to  give  bonds  for  shipments  to  Nassau  ;  no 
bonds  were  required  for  shipments  of  goods  to  Havana.  There  were  occasional 
orders  for  foreign  goods,  which  were  purchased  in  bond,  and  for  these  regular 
export  bonds  were  given. 

Question.  Did  you  ever  give  any  of  these  consumption  bonds  to  Nassau? 

Answer.  Yes,  sir,  1  did  in  the  spring. 

Question.  Were  there  any  obstructions  or  delays  at  the  custom-house  in  the 
execution  of  these  bonds  ? 

Answer.  Not  at  first  when  I  gave  them;  I  only  gave  three  or  four  in  the 
spring  of  1863,  and  when  these  were  given  I  had  no  difficulty  in  giving  them; 
but  1  had  some  difficulty  in  cancelling  them  when  the  proper  evidence  came  for 
their  cancellation. 

Question.  What  was  the  difficulty  then? 

Answer.  There  had  been  some  new  treasury  regulations  which  provided  that 
bonds  should  not  be  cancelled  upon  a  consul's  ceititicate  of  a  similar  form  to 
those  upon  which  they  had  been  previously  cancelled.  Finally  1  procured  all 
the  necessary  papers  to  cancel  these  bonds. 


II.  Rep.  Com.  Ill  11 


162 


NEW  YORK  CUSTOM  HOUSE. 


Question.  Did  you  in  the  cancellation  of  these  bonds,  procuring  or  expediting 
their  surrender,  have  occasion,  directly  or  indirectly,  to  use  any  money  \ 
Answer.  No,  sir. 

Question.  To  expedite  the  shipment  of  goods  under  the  orders  you  received, 
did  you  have  occasion  to  use  any  money  yourself,  directly  or  indirectly  ? 

Answer.  Never;  let  me  qualify  this  by  stating  this:  It  frequently  happens 
that  merchants  obtain  orders  for  shipment  of  goods  on  particular  vessels,  where 
there  is  but  little  time  left  between  the  receipt  of  the  order  and  the  sailing  of  the 
vessel.  In  these  cases  more  than  ordinary  expedition  nm<t  he  used  in  order  to 
execute  the  orders,  and  in  some  cases  where  inspectors  were  detailed  to  inspect 
foreign  goods  shipped  in  bond  ;  where  they  had  to  stay  over  their  time,  they 
sometimes  expect  a  tew  dollars.  With  that  exception,  which  amounts  to  a  mere 
trifle,  I  never  ptfid  any  money  for  that  purpose. 

Question.  You  speak  of  Hoffnung,  in  Canada,  sending  you  orders  ;  he  after- 
wards came  here  ] 

Answer.  Yes.  sir. 

Question.  What  were  your  relations  with  him  afterwards? 

Answer.  None  lair  that  of  a  commission  merchant  with  his  clients. 

Question.  Save  you  any  knowledge  that  he  ever  gave  any  money  to  Mr. 
Stanton  for  any  favors  extended  to  him  in  the  transaction  of  business  in  his 
bureau  ? 

Answer,  I  do  not  know  anything  of  the  kind  from  my  own  knowledge;  I 
can  only  speak  upon  information  and  belief. 
Question.  When  did  Mr.  Hoffnung  come  here  ? 
Answer.  In  April  or  May,  1863. 
Question.  What  business  did  he  engage  in? 

Answer.  Commission  business  to  Australia,  Canada,  Nassau,  England,  Deme- 
rara,  Barbadoes  ;  I  made  shipments  for  him  to  all  these  places. 

Question.  Were  you  thrown  into  confidential  relations  with  him  in  respect  to 
this  business  ? 

Answer.  Yes,  sir ;  I  had  been  his  friend  for  fifteen  years. 
Question.  Did  he  converse  freely  with  you  about  his  business  [ 
Answer.  Yes,  sir. 

Question.  Did  he  ever  make  any  communications  to  you  with  reference  to 
any  difficulties  or  inconveniences  he  ever  experienced  at  the  custom-house? 
Answer.  Yes,  sir. 

Question.  Did  he  ever  inform  you  that  he  found  any  difficulty  in  the  way  of 
transaction  of  business  at  the  custom-house  which  rendered  it  convenient  and 
proper  for  him,  in  his  opinion,  to  use  money? 

Answer.  I  cannot  give  you  a  definite  answer  to  that  question,  and  I  will 
give  you  exactly  what  you  require.  When  I  found  that  there  was  difficulty  in 
cancelling  these  bonds,  I  told  Mr.  Hoffnung  that  I  mus1  decline  all  further  busi- 
ness to  Nassau.  It  was  in  March  or  April  that  I  made  three  or  four  shipments. 
He  went  to  Nassau  himself,  and  his  brother-in-law,  Wolf,  came  back  from 
Nassau,  and  he  made  shipments,  but  I  forget  who  was  the  surety  upon  the 
bonds;  bul  there  was  nothing  irregular  at  that  time  of  any  description.  He 
(Hoffnung)  returned  from  Nassau,  and  he  told  me  then  that  he  did  not  see  why 
I  could  not  do  the  same  as  other  commission  merchants  in  the  city  ;  that  he 
was  well  satisfied  that  there  were  houses  who  were  doing  an  active  business 
there,  and  he  thought  I  should  be  put  upon  the  same  footing  as  they  were.  I 
told  him  that  I  did  nor  know  anything  about  it  at  all,  hut  I  would  see.  I  made 
some  inquiries  of  a  broker,  and  I  found  that,  as  far  as  he  knew,  everything  was 
done  in  a  perfectly  straight-forward  and  regular  manner.  I  called  upon  Mr. 
Stanton,  and  asked  him,  and  he  said  he  was  perfectly  willing  to  do  everything 
that  was  right,  proper,  and  legitimate;  that  the  regulations  were  very  stringent, 
and  that  he  must  insist  upon  just  such  sureties  as  he  was  perfectly  satisfied 
with.    I  was  very  anxious  to  do  Mr.  Iloffnung's  business  if  I  could  consist- 


NEW  YORK  CUSTOM  HOUSE. 


1G3 


ently  with  my  safety,  or  rather  with  the  law.  Mr.  Hoffnung  was  perfectly 
satisfied  to  make  shipments  himself,  or  have  other  parties  or  his  brother-in-law 
ship  goods,  if  he  had  the  same  facilities  with  others.  Among  other  parties  with 
whom  I  had  conversation  upon  the  subject  was  Mr.  Palmer.  I  complained  to 
Mr.  Palmer  that  I  thought  Mr.  Stanton  objected  to  sureties  I  offered  upon  these 
bonds  for  Mr.  Hoffnung,  and  that  seemed  to  me  to  indicate  a  disposition  not  to 
permit  me  to  do  my  business  as  easily  as  other  persons.  He  thought  I  was 
mistaken,  and  he  said  he  would  see  Mr.  Stanton  upon  the  subject.  He  saw 
Mr.  Stanton,  I  believe,  and  he  said  Mr.  Stanton  insisted  upon  real  estate  sure- 
ties. I  told  him  that  I  did  not  know  any  people  who  owned  real  estate  that 
I  would  like  to  ask  to  become  sureties,  and  I  asked  him  if  he  could  suggest 
anybody  himself.  I  told  him  that  Mr.  Hoffnung  had  empowered  me  to  remu- 
nerate any  such  sureties  for  any  risk  they  might  run  in  this  matter,  and  he  said 
he  would  see  and  consider  about  it.  After  two  or  three  days  had  elapsed,  he 
told  me  that  he  had  had  a  conversation  with  a.  gentleman  by  the  name  of 
Smalley.  and  that  he  was  perfectly  willing  to  go  upon  the  bonds.  Mr.  Smalley 
became  surety  upon  these  bonds,  and  I  paid  him  regularly  8100  for  each  bond. 
I  drew  a  check  to  his  own  order,  and  left  his  name  on  the  margin  of  my  check- 
book. I  did  not  know  at  that  time  that  Smalley  was  in  the  custom-house  em- 
ploy, nor  did  I  know  that  fact  until  after  I  was  arrested,  and  then  I  learned  it 
from  the  papers.  I  think  Mr.  Stanton  made  some  objections,  when  the  bonds 
were  large,  that  Mr.  Smalley  was  not  qualified  to  become  surety,  or  rather 
could  not  qualify  in  the  necessary  amount.  Sometimes  Mr.  Smalley  was  out 
of  town,  and  as  the  time  before  the  Corsica,  upon  which  most  of  these  ship- 
ments was  made,  was  to  sail  would  be  very  short,  and  as  the  clearance  had  to 
be  perfected  before  the  order  for  freight  was  given,  Mr.  Hoffnung  would  effect 
a  clearance  from  Mr.  Stanton  upon  the  promise  that  Mr.  Smalley,  upon  his  re- 
turn to  town,  would  sign  the  bond  as  surety.  I  do  not  think  there  was  any 
difficulty  about  the  cancellation  of  bonds  upon  the  proper  evidence.  The  diffi- 
culties were  in  regard  to  obtaining  clearances  in  the  right  time. 

Question.  Did  Mr.  Hoffnung,  in  his  negotiations  with  Mr.  Stanton,  use  money  ? 

Answer.  He  told  me  that  he  felt  satisfied  that  money  was  used  in  some  way, 
and  I  began  to  think  so,  because  I  found  that  other  parties  were  doing  their 
business  regularly  and  with  every  facility,  and  it  seemed  to  me  that  when  Hoff- 
nung or  I  came  before  him  to  do  any  custom-house  business,  there  were  unusual 
obstacles  thrown  in  the  way.  Mr.  Hoffnung  suggested  that  money  must  be 
used.  I  told  him  that  I  did  not  wish  to  go  into  any  such  business  as  that,  and 
if  he  thought  so,  to  take  the  matter  into  his  own  hands.  The  first  intimation 
I  had  of  this  business  he  told  me  he  was  going  to  see  Mr.  Stanton  at  his  own 
house.  I  believe  I  gave  him  a  check  for  $200.  That  was  the  first  time.  He 
drew  the  money,  and  went  to  see  him. 

Question.  How  do  you  know  he  went  to  see  him  ? 

Answer.  I  don't  know  that  he  did  ;  only  he  told  me  he  was  going  to  see 
him ;  I  saw  him  go  into  the  Sixth  avenue  cars,  and  he  said  he  was  going  up  to 
Stanton's.  Upon  that  occasion  he  said  he  did  not  see  Mr.  Stanton ;  that  he 
(Stanton)  was  not  at  home. 

Question.  What  did  he  do  with  the  money  ? 

Answer.  He  kept  it.  He  was  in  the  habit  of  drawing  money  at  all  times, 
and  frequently  I  would  give  him  checks  or  money.  I  always  had  large 
amounts  of  money  in  my  possession,  and  I  gave  him  checks  when  he  wanted 
them  for  other  purposes. 

Question.  Did  you  upon  several  occasions  at  Mr.  Hoffnung's  solicitation  pro- 
cure fifty  or  one -hundred-dollar  bills  I 

Answer.  I  did  three  or  four  times.  I  either  got  $100  .bills  or  I  might  have 
sent  out  a  boy  for  them.  I  think  once  or  twice  I  sent  one  of  the  boys  in  the 
office  to  the  bank  to  draw  8100  bills  for  the  checks. 


164 


NEW  YORK  CUSTOM  HOUSE. 


Question.  What  did  he  say  he  wanted  bills  of  that  denomination  for? 
Answer.  For  the  purpose,  I  think,  of  seeing  Mr.  Stanton. 
Question.  Did  he  ever  say  why  he  gave  that  money  to  Mr.  Stanton? 
Answer.  Never  distinctly  why. 

Question.  Did  he  say  that  it  was  to  facilitate  matters  in  the  clearance  of 
goods,  or  the  acceptance  of  sureties,  or  anything  of  that  sort? 
Answer.  That  was  the  understanding. 

Question.  Do  you  know  from  what  he  said  that  he  left  money  at  any  time 
at  Mr.  Stanton's  desk  or  in  an  envelope  for  him  at  his  house  ? 

Answer.  I  think  on  one  occasion  he  mentioned  to  me  that  he  left  some  money 
for  Mr.  Stanton  on  his  desk  at  the  office. 

Question.  Have  you  any  idea  from  your  conversation  with  Mr.  Hoffnung 
how  much  money  he  used  with  Mr.  Stanton  .; 

Answer.  I  think  he  told  me  it  was  $200  each  time  that  he  used ;  it  was 
either  three  or  four  times,  but  it  might  have  been  more,  and  it  might  have  been 
under  three.  I  was  giving  Mr.  Hoffnung  money  all  the  time,  and  charging  it 
to  his  account;  and  I  would  not  swear  that  such  and  such  checks  were  given 
for  such  and  such  purpose.  I  recollect  the  amounts,  as  he  stated  them  to  me, 
were  each  time  $200. 

Question.  You  have  no  knowledge  about  this  matter  independent  of  Mr.  Hoff- 
nung's  statement  to  you? 

Answer.  No  knowledge  whatever. 

Question.  Have  you  any  knowledge  of  any  other  parties  giving  money  to  Mr. 
Stanton  for  this  purpose  besides  Mr.  Hoffnung  ? 

Answer.  I  cannot  say  that  I  have.  I  have  heard  it  stated  by  some  person 
(I  don't  know  whether  it  came  through  my  broker  or  Mr.  Palmer)  that  Mr. 
Eneas  was  very  actively  engaged  in  this  business,  and  that  he  experienced  no 
difficulty  in  the  cancellation  of  his  bonds. 

Question.  How  many  shipments  did  you  make  yourself  to  Nassau? 

Answer.  Three  or  four. 

Question.  Did  you  ever  make  any  to  Bermuda? 

Answer.  I  never  made  any  shipments  to  Bermuda.    I  chartered  a  vessel  for 
Mr.  Hoffnung  to  go  to  Bermuda,  and  he  shipped  the  goods. 
Question.  Did  you  buy  them,  or  he  ? 
Answer.  I  bought  them  for  him. 
Question.  What  were  the  goods? 

Answer.  Flour,  produce  of  all  kinds,  cheese,  candles,  soap,  rope,  bagging — 
a  general  assortment  of  goods. 

Question.  Did  you  buy  more  than  one  shipment? 
Answer.  No,  sir. 

Question.  Did  you  have  any  difficulty  in  clearing  these  goods  at  the  custom- 
house ? 

Answer.  None  that  I  recollect. 

Question.  Have  you  any  knowledge  of  money  being  paid  directly  to  Mr. 
Stanton  for  the  surrender,  abstraction  or  cancellation  of  bonds  ? 
Answer.  No,  sir. 

Question.  Have  you  any  knowledge  of  goods  being  shipped  with  or  without 
a  consideration,  which  were  not  in  the  manifest  ? 
Answer.  None  whatever. 

Question.  Have  you  any  knowledge  of  goods  being  shipped  for  a  considera- 
tion, that  were  on  the  manifest  ? 

Answer.  No,  sir;  I  knew  of  nothing  except  what  I  have  seen  in  the  public 
prints  ;  I  know  of  nothing  save  what  1  have  told  you. 

Question.  What  did  Hoffnung  leave  the  city  for  ? 

Answer.  For  business.  He  was  at  Halifax  when  I  was  arrested,  and  he  has 
never  been  back. 


NEW  YORK  CUSTOM  HOUSE. 


165 


Question.  Did  you  have  any  of  his  funds  in  your  hands? 

Answer.  A  very  large  amount.  The  custom-house  have  had  them  in  their 
possession  ever  since  they  broke  open  my  safe;  it  is  between  30  and  40,000 
dollars  ;  these  funds  were  all  in  gold  drafts  and  in  gold,  and  in  bills  of  exc  hange. 
With  his  property  my  little  store  was  taken. 

Question.  Who  took  your  safe — cut  it  open  ? 

Answer.  I  wish  I  could  discover. 

Question.  Who  gave  the  order? 

Answer.  I  cannot  ascertain  that. 

Question.  You  cannot  find  out  who  did  it  ? 

Answer.  No,  sir.  I  have  been  told  by  my  clerk  who  was  there,  that  they 
turned  him  out  of  the  room,  locked  the  door,  and  put  something  before  the  key- 
hole, and  that  there  were  several  parties  engaged  in  it.  I  do  not  know  the 
names  of  all  the  parties  who  were  in  there.  He  mentioned  the  names  of  Deputy 
Surveyor  Brown  and  Mr  Isaacs  ;  I  think  he  mentioned  the  name  of  a  gentle- 
man whom  I  saw  here,  Mr.  Cuyler  ;  there  were  several  other  parties  there  whose 
names  I  cannot  recollect.  A  portion  of  the  money  they  took  from  my  safe  w  as 
money  that  had  been  previously  seized  by  the  custom-house  authorities  on  the 
person  of  Mr.  Wolf,  on  board  of  the  steamer,  but  which,  upon  the  represen- 
tations of  Lord  Lyons,  was  subsequently  given  up,  or  rather,  which  was  given 
up  after  an  investigation  had  been  made,  as  I  understand,  by  Mr.  Jordan,  the 
Solicitor  of  the  Treasury.  Nearly  the  whole  of  this  property  was  precisely  the 
same  property  that  was  seized  on  Mr.  Wolf.  There  was  a  check  for  $9,600, 
the  proceeds  of  some  bonds  that  had  been  sent  to  Philadelphia  for  sale ;  these 
bonds  were  brought  here  from  Nassau  ;  they  were  2d  mortgage  bonds  of  the 
Broad  Top  and  Hillhouse  railroad,  for  $13,000 ;  these  bonds  were  seized  and 
subsequently  given  up  ;  1  sent  them  to  Drexel  &  Co.,  of  Philadelphia  ;  they 
found  a  purchaser  for  them  and  remitted  me  the  money  ;  I  received  the  check  for 
them  the  morning  I  was  arrested. 

Question.  What  became  of  it? 

Answer.  That  is  among  the  other  securities.  There  were  also  two  drafts 
among  the  securities  that  were  remitted  to  me  by  Finley  &  Ganley,  of  Havana. 
I  did  the  money  business  of  that  house.  These  two  bills  I  think  were  given  up 
to  Mr.  Finley,  who  came  on  here  by  General  Dix's  order.  General  Dix  issued 
an  order  for  their  delivery,  and  I  have  been  told  by  my  counsel  that  General 
Dix  never  gave  an  order  for  the  opening  of  my  safe. 

Tcs'hnony  of  James  Kent  Boyd. 

New  York,  April  13,  1864. 

James  Kent  Boyd  sworn. 

By  the  chairman  : 
Question.  How  long  have  you  resided  in  this  city? 

Answer.  I  have  been  here  pretty  near  all  my  life ;  I  was  born  in  Baltimore. 
Question.  What  is  your  occupation? 

Answer.  It  is  now  what  they  call  a  custom-house  broker. 
Question.  How  long  have  you  been  in  that  business  ? 
Answer.  Between  five  and  six  years. 
Question.  In  what  do  your  duties  consist  ? 

Answer.  In  passing  entries  for  merchants  through  the  custom-house,  through 
the  routine  from  one  clerk  to  another. 

Question.  Have;  you  had  anything  to  do  in  connexion  with  the  clearance  of 
goods  ? 

Answer.  But  very  little. 

Question.  Have  you  ever  been  employed  to  obtain  bonds  and  sureties  to  bonds 
for  the  clearance  of  vessels  to  Nassau,  Cuba,  Matamoras,  Bermuda,  &c1 


1G6 


NEW  TORE  CUSTOM  HOUSE. 


Answer.  1  have  never  been  required  to  obtain  either  a  bond  or  a  surety,  but 
I  Lave  had  connexion  with  them  in  respect,  to  getting  export  papers  through  the 
custom-house  in  a  legitimate  M  ay. 

Question.  Have  you  had  anything  to  do  with  the  procuring  the  surrender  or 
the  cancellation  of  any  of  these  bonds  ? 

Answer.  I  only  made  one  attempt  to  cancel  these  bonds,  and  this  was  by  the 
papers  handed  me  by  one  of  the  shippers.  These  papers  I  presented  to  Mr. 
Hanscom  ;  he  said  that  the  papers  were  not  sufficient,  and  he  would  not  take 
them  ;  I  gave  them  back  to  the  merchant  ;  I  never  heard  anything  more  of  it. 

Question.  Did  you  ever  have  any  conversation  with  Mr.  II.  B.  Stanton  in 
reference  to  these  bonds  ? 

Answer.  No,  sir,  except  in  a  mere  legitimate  way — that  is,  to  ask  him  if  such 
a  surety  would  do,  or  what  amount  of  bonds  he  wanted  ;  some  mere  casual  ques- 
tion like  that. 

Question.  Have  you  ever  had  any  with  his  son,  Cady  Stanton? 
Answer.  1  have  had  to  a  certain  extent. 

Question.  Did  you  ever  procure  the  surrender  of  a  bond  or  bonds  from  him  t 
Answer.  Never. 

Question.  Through  or  from  Cady  Stanton? 

Answer.  Never  one  solitary  paper  of  any  kind.  As  to  young  Stanton,  the 
explanation  I  gave  to  the  committee  upon  the  investigation  of  Mr.  Stanton's  case 
was  simply  this:  that  certain  parties,  (I  refused  to  give  their  names  then,  and  I 
do  not  suppose  it  is  necessary  to  give  them  here,)  more  than  one  of  my  custom- 
ers whose  export  papers  1  had  put  through,  and  who  were  required  to  give  bonds, 
came  to  me  and  told  me  that  the  thing  could  be  done  upon  the  payment  of  a  cer- 
tain amount,  and  where  the  certificates  furnished  Mr.  Stanton  were  not  accept- 
able, they  could  be  made  acceptable  by  paying  a  certain  amount ;  these  custom- 
ers of  mine  came  to  me  with  this  story,  and  asked  me  to  investigate  the  matter 
and  see  if  it  could  be  done  ;  I  did  investigate  the  matter  so  far  as  (to  use  a  vulgar 
phrase)  to  pump  young  Stanton,  and  I  saw  that  he  was  very  weak.  Although 
young  Stanton  had  importuned  me  two  or  three  times  to  transact  the  business, 
I  told  them  that  I  would  have  nothing  more  to  do  with  it.  I  told  the  parties, 
whenever  they  asked  me,  to  make  their  own  arrangements.  I  will  say  that  Mr. 
Benjamin  was  one  of  those  parties  who  asked  me,  among  others.  He  asked  me 
to  pump  young  Stanton,  and  find  out  if  the  thing  could  be  done.  AVhether  Mr. 
Benjamin  did  or  not  himself  I  cannot  say,  but  it  is  my  opinion  that  he  did  not. 
I  can  safely  and  conscientiously  say  in  regard  to  Mr.  Benjamin's  business,  as 
far  as  I  know,  so  far  from  trying  to  elude  anything  that  was  required  by  the 
forms  of  the  custom-house,  on  the  contrary,  he  told  me  to  comply  with  every- 
thing that  was  required,  and  I  did  so.  Every  solitary  act  of  mine  with  regard 
to  Benjamin's  business  at  the  custom-house  was  perfectly  legitimate,  so  far  as  I 
did  the  business. 

Question.  Did  you  ever  approach  H.  B.  Stanton  upon  the  subject? 

Answer.  No,  sir. 

Question.  Do  you  know  of  any  one  who  could  give  us  information  as  to  who 
did  actually  procure  the  abstraction  of  any  bonds? 
Answer.  1  do  not. 

By  Mr.  Le  Blond  : 

Question.  Can  you  not  think  of  some  other  party  besides  Benjamin,  whom  you 
did  business  with,  who  suggested  how  these  things  could  be  done  in  the  bond 
bureau  ? 

Answer.  The  only  ones  were  those  for  whom  Benjamin  transacted  business 
— foreigners,  who  were  away. 

Question.  Can  you  not  give  us  the  names  ? 

Answer.  One  was  Wolf,  and  another  party  was  HofTnung  ;  there  are  no 


NEW  YORK  CUSTOM  HOUSE. 


107 


others  that  I  can  call  to  mind.  They  were  pretty  nearly  all  the  parties  for 
whom  I  did  anything  in  that  room. 

Question.  What  induced  you  to  go  to  young  Stanton  ? 

Answer.  Their  asking  me  to  see  him. 

Question.  Did  they  ask  you  to  go  to  young  Cady  Stanton  ? 
Answer.  No,  I  cannot  say  that  they  did  really  say  go  to  Cady  Stanton,  but 
to  find  out  if  the  tiling  could  be  done  in  that  bureau. 
Question.  And  you  fell  upon  young  Stanton? 
Answer.  Yes,  sir. 

Question.  Who  first  opened  the  subject,  yon  or  young  Stanton,  about  pay- 
ing a  consideration  for  the  cancellation  of  bonds  ] 

Answer.  I  cannot  say.    I  might  have  done  so,  and  he  might. 
Question.  Where  did  this  conversation  take  place  I 

Answer.  That  would  be  hard  to  answer,  because  I  met  him  in  the  street,  up 
town,  in  the  custom-house,  and  all  over. 

Question.  Were  you  ever  approached  by  anybody  upon  the  subject  of  pro- 
curing the  abstraction  of  bonds  from  the  bond  bureau  I 

Answer.  I  cannot  say  that  I  have,  unless  the  purport  or  the  idea  of  these 
parties  who  did  speak  to  me  about  them  was  intended  in  that  way.  It  may 
have  been.    I  cannot  say. 

Question.  Y"ou  heard  the  report  of  the  abstraction  of  a  certain  class  of  bonds 
from  the  bond  bureau  ? 

Answer.  YVs,  sir. 

Question.  Were  you  advised  of  the  shipment  of  goods  to  Nassau  by  Iloff- 
nung,  Benjamin  &  Woolf,  at  the  time  they  were  about  to  ship  ] 

Answer.  The  first  knowledge  I  had  that  they  were  about  to  ship  goods  to 
Nassau,  they  would  bring  in  the  papers,  a  part  complete,  the  legitimate  export 
entries,  and  say  :  "  Here,  go  on  with  these  as  quick  as  you  can.  We  want  to 
ship  to-day  or  to-morrow."  That  is  aH  the  previous  knowledge  I  may  say  I 
had  of  it. 

Question.  You  were  acting  as  the  broker  at  the  time  these  bonds  were  given 
that  were  afterwards  abstracted  1 

Answer.  I  don't  know  that  fact,  for  I  don't  know  that  any  were  abstracted, 
except  from  the  reports  made  in  reference  to  it. 

Question.  How  long  had  you  been  acting  as  broker  for  Mr.  Benjamin  ? 

Answer.  I  had  been  acting  for  him  I  may  say  two  and  a  half  or  three  years, 
pretty  much  entirely. 

Question.  Up  to  the  time  of  his  arrest  1 

Answer.  Y"es,  sir. 

Question.  Do  you  knew  a  broker  by  the  name  of  Henry  0.  Smith  \ 
Answer.  Yes,  sir. 

Question.  Have  you  ever  seen  him  in  conversation  with  II.  B.  Stanton  I 
Answer.  Never,  I  believe,  in  my  life. 

Question.  Has  he  ever  told  you  anything  about  the  manner  in  which  bonds 
could  be  abstracted  from  the  bond  bureau  1 
Answer.  Never  one  word. 

Question.  Has  H.  C.  Smith  a  partner ;  if  so,  what  is  his  name  ? 
Answer.  John  A.  Lockwood. 

Question.  Was  it  a  general  understanding  among  the  custom-house  brokers 
that  bonds  could  be  abstracted  from  the  bond  bureau,  at  the  time  you  have 
reference  to,  and  that  certain  securities  or  cancellations  could  be  had  by  the 
giving  of  money  tor  them  I 

Answer.  I  cannot  say  that  it  was  a  general  understanding,  from  the  tact  that 
I  never  did  anything  of  the  kind  myself,  and  1  don't  know  of  any  one  else 
doing  it  ;  but  it  was  very  much  whispered  about.  It  was  an  impression  made 
around  among  the  brokers. 


168 


NEW  YORK  CUSTOM  HOUSE. 


Question.  Was  this  genera]  impression  that  they  could  he  procured  through 
the  elder  Stanton,  or  young  Stanton,  or  any  other  member  of  the  bond  bureau  f 
Answer.  I  cannot  Bay  that  anybody  in  particular  was  mentioned. 

Testimony  of  Ephraim  Morris. 

New  York,  April  16,  1864. 

Ephraim  Morris  sworn. 

By  the  chairman  : 
Question.  How  long-  have  you  lived  in  this  country] 
Answer.  Ten  or  Twelve  years. 
Question.  Where  have  you  lived? 
Answer.  In  Texas. 
Question.  What  part  of  Texas  ? 
Answer.  Jefferson,  in  the  eastern  part  of  Texas. 
Question.  How  long  did  you  live  there  ? 
Answer.  About  eight  years. 
Question.  How  long  since  did  you  leave  there? 

Answer.  It  has  been  twenty  months.  I  left  there  at  the  time  General  Ham- 
ilton left. 

Question.  You  have  been  here  since  ? 
Answer.  Yes,  sir. 

Question.  What  was  your  business  in  Texas  ? 
Answer.  Merchant. 

Question.  What  has  been  your  business  since  you  came  here  ? 
Answer.  Commission  business.    Buying  and  selling  goods. 
Question.  Did  you  make  any  shipments  yourself  ? 
Answer.  No,  sir. 

Question.  Who  did  you  buy  goods  for  ? 

Answer.  I  went  with  goods  to  Matamoras  with  my  father-in-law.  His  name 
is  Roth. 

Question  How  long  ago  ? 

Answer.  The  first  trip  we  made  was  twelve  months  ago.  I  returned  from 
there,  and  went  again.  I  made  two  trips.  I  took  goods  each  time  for  my 
father-in-law,  to  Matamoras. 

Question.  What  kind  of  goods  ? 

Answer.  The  first  goods  were  pretty  generally  for  the  Mexican  market — dry 
goods,  groceries,  boots,  shoes  ;  no  blankets. 
Question.  Any  ammunition  ? 
Answer.  No,  sir. 

Question.  How  was  it  the  second  time? 

Answer.  The  second  time  we  had  groceries,  liquors,  boots  and  shoes. 
Question.  How  long  were  you  there  the  first  time  ? 
Answer.  About  a  month. 

Question.  Did  you  go  back  into  the  country  ? 
Answer.  A  few  miles  out, 

Question.  How  long  were  you  there  the  second  time  ? 
Answer.  About  two  months. 

Question.  What  did  you  do  with  the  goods  either  time  when  you  got  them 
down  there  ? 

Answer.  The  first  time  we  sold  them  to  a  citizen  of  Mexico.    I  think  his 
name  wras  Bennett.    He  lived  in  Matamoras. 
Question.  Was  he  an  American  citizen  ? 
Answer.  He  was  a  Mexican  citizen. 
Question.  Where  was  he  born  ? 


NEW  YORK  CUSTOM  HOUSE. 


169 


Answer.  That  I  never  inquired. 

Question.  Who  did  you  sell  to  the  second  time? 

Answer.  The  second  time  I  did  not  have  any  control  over  the  goods;  neither 
had  my  father-in-law. 

Question.  Who  did  have  ? 

Answer.  A  man  by  the  name  of  Caymaro.  My  father-in-law,  when  we  first 
went  out,  took  a  draft  on  Havana  which  was  protested.  By  advice,  my  father- 
in-law  took  goods  of  parties  in  this  city  for  the  amount  of  the  draft  and  83.000 
more,  which  goods  were  shipped  on  the  Sarah  March,  and  were  under  the  im- 
mediate control  of  Caymaro  from  this  city  on  the  24th  of  March,  1SG3,  and 
they  were  cleared  from  the  custom-house  for  Matamoras.  Arriving  at  the 
mouth  of  the  Rio  Grande,  a  part  of  these  goods  were  taken  off  and  were  sold 
direct,  by  myself,  under  the  directions  of  Caymaro,  to  the  supercargo  of  a 
blockade-runner,  (Mr.  Hurley,)  who  paid  Mr.  Caymaro  $2,701  30.  The  bal- 
ance of  the  cargo  was  landed  at  Matamoras.  Caymaro  went  over,  daily,  to 
Brownsville,  Texas,  negotiating  for  the  sale  of  these  goods  in  exchange  for 
cotton. 

Question.  Who  did  he  sell  the  goods  to  ? 
Answer.  To  the  confederate  agents. 
Question.  What  were  their  names? 

Answer.  One  was  General  Bee.  He  was  the  acting  quartermaster  in  the 
service  of  the  confederate  army.  These  goods  consisted  of  biscuits,  flour, 
blankets,  heavy  wagons. 

Question.  Did  these  goods  pay  for  the  amount  of  cotton  Caymaro  received  ? 

Answer.  No,  sir.    He  paid  the  balance  in  money. 

Question.  Where  did  Caymaro  live? 

Answer.  Here,  in  the  city  of  New  York.    He  is  now  here.    He  is  a  Spaniard. 
Question.  Did  you  go  with  Caymaro  to  Brownsville  when  he  was  negotiating 
for  the  sale  of  goods  in  reference  to  this  cotton  ? 
Answer.  Yes,  sir. 

Question.  Were  you  present  and  did  you  see  him  negotiating  the  sale  of  these 
goods  for  cotton  ? 
Answer.  Yes,  sir. 

Question.  How  much  was  the  balance  in  money  that  he  paid  ? 
Answer.  At  one  time  he  paid  $500,  and  at  another  time  $150. 
Question.  What  did  he  do  with  the  cotton  ? 

Answer.  A  portion  of  it  went  to  Havana,  and  a  portion  of  it  came  here,  126 
bales  in  the  bark  Elf.    The  portion  that  went  to  Havana  went  on  the  Echo. 

By  Mr.  Le  Blond  : 
Question.  Who  was  the  owner  of  the  Elf? 
Answer.  That  I  cannot  tell  you. 
Question.  Who  was  her  captain  ? 
Answer.  I  have  forgotten  his  name. 
Question.  Who  chartered  the  vessel  ? 

Answer.  I  don't  know.  At  the  time  of  the  sale  and  delivery  of  this  cotton 
my  brother  (E.  H.  Morris)  and  myself  were  in  Matamoras,  and  I  saw  the  cot- 
ton coming  over  from  Brownsville. 

Question.  The  cotton  on  the  bark  Elf — was  it  seized  by  the  government,  and 
is  it  in  a  government  warehouse  ? 

Answer.  The  cotton  was  seized.  It  is  not  in  a  warehouse,  as  I  understand, 
but  was  taken  out  on  bond. 

Question.  How  did  you  know  that  Caymaro  paid  $500  at  one  time  ? 

Answer.  I  counted  the  money  by  direction  of  Caymaro,  and  I  paid  it  myself 
to  the  confederate  agents. 

Question.  How  did  you  know  that  they  were  confederate  agents  \ 


170 


NEW  YORK  CUSTOM  HOUSE. 


Answer.  I  was  a  Texan  myself,  and  in  talking  with  them  they  told  me  that 
lie  had  a  eommission  in  the  confederate  service.    I  don't  know  their  names. 
Question.  Did  von  take  a  receipt  for  the  money  ? 
Answer.  No,  sir.    Caymaro  was  there. 
Question.  What  do  you  know  about  the  $150  ? 

Answer.  I  counted  that  too,  and  I  paid  it  to  the  same  party  the  same  evening. 
The  bargain  was  made  tor  the  cotton  in  Brownsville,  and  the  cotton  was  deliv- 
ered in  Brownsville,  to  Caymaro,  and  Caymaro  brought  it  over,  himself,  and 
the  confederate  agents  came  to  Matamoras  to  receive  the  balance  of  their  pay 
for  the  cotton. 

Question.  Was  Caymaro  present  when  the  money  was  paid  ? 
Answer.  Yes,  sir;  each  time. 

Question.  Was  Caymaro  acquainted  with  these  men  from  whom  he  bought 
the  cotton,  previous  to  that  transaction  ? 
Answer.  That  is  a  thing  I  cannot  tell. 

Question.  Did  Caymaro  know  that  these  men  were  confederate  agents  ? 

Answer.  I  could  not  state  exactly  that  he  knew  it.  Of  course,  he  must  have 
known  it,  because  they  came  from  Texas. 

Question.  Was  Brownsville  at  that  time  under  the  jurisdiction  of  the  con- 
federate government? 

Answer.  Yfes,  sir. 

Question.  When  was  this  cargo  landed  at  Matamoras,  and  at  what  time  did 
the  sale  of  cotton  take  place  to  Caymaro  ? 

Answer.  That  was  some  time  in  May  or  June,  1863. 

Question.  Have  you  had  any  conversation  with  Caymaro  since  his  and  your 
return  to  New  Y'ork,  upon  this  subject  ? 
Answer.  No,  sir. 

Question.  Had  you  any  interest,  directly  or  indirectly,  in  this  cotton  that  was 
brought  to  the  city  of  New  Yrork  ? 
Answer.  No,  sir. 

Question.  Or  in  any  portion  of  the  cotton  that  was  purchased  at  that  time  by 
Caymaro  ? 

Answer.  No,  sir. 

testimony  of  Peter  II.  Morris. 

New  YTork,  April  18,  1S64. 

Peter  H.  Morris  sworn. 

By  the  chairman : 
Question.  Do  you  reside  in  this  city  ? 
Answer.  Yes,  sir. 

Question.  How  long  have  you  resided  here  ? 

Answer.  Four  or  five  months.  I  left  Texas  in  1861 ;  came  to  New  Y^ork; 
was  here  about  three  months;  then  returned  to  Matamoras,  and  staid  there  until 
about  five  months  ago ;  am  a  brother  of  Ephraim  Morris  ;  while  in  Matamoras 
I  was  engaged  in  merchandising — in  the  retail  trade  ;  sold  dry  goods  and  Yankee 
notions — goods  for  the  Mexican  trade. 

Question.  Were  you  in  Matamoras  when  the  Sarah  March  came  to  the  mouth 
of  the  Rio  Grande? 

Answer.  The  Sarah  March  arrived  there  before  I  did. 

Question.  Were  you  there  at  the  time  the  Elf  took  on  board  the  cotton  ? 

Answer.  Yes,  sir. 

Question.  Do  you  know  w  ho  shipped  that  cotton  ? 
Answer.  Camaryo. 

Question.  Do  you  know  who  paid  for  it  ? 


NEW  YORK  CUSTOM  HOUSE. 


171 


Answer.  He  paid  for  it. 
Question.  How  do  you  know  ? 

Answer.  I  saw  it — a  part  was  paid  in  money,  and  a  part  in  goods. 

Question.  Where  were  the  goods  ? 

Answer.  He  delivered  them  over  to  Brazil. 

Question.  Camaryo  went  over  first  and  made  hi*  bargain  \ 

Answer.  Yes,  sir. 

Question.  Where  were  the  goods  then,  in  Matamoras  or  on  board  the  Sarah 
March  ? 

Answer.  In  Matamoras  ;  he  shipped  them  over  to  Brownsville. 
Question.  Who  did  he  sell  them  to  in  Brownsville  ? 

Answer.  §ome  to  these  men  that  he  bought  cotton  of — some  he  sold  to  General 
Bee,  of  the  confederate  army. 

Question.  How  do  you  know  that  he  sold  goods  to  General  Bee  ? 

Answer.  I  saw  him  delivering  the  goods  to  him. 

Question.  Do  you  know  what  Camaryo  got  for  them  ? 

Answer.  He  got  cotton  for  them. 

Question.  Do  you  know  how  many  bales  ? 

Answer.  I  cannot  tell  exactly. 

Question.  How  do  you  know  he  got  cotton  ? 

Answer.  Because  I  saw  the  cotton  that  was  brought  over. 

Question.  Where  was  it  delivered  ? 

Answer.  General  Bee  sent  it  over  to  Camaryo. 

Question.  Then  the  committee  understand  you  that  General  Bee  delivered 
the  cotton  in  Matamoras,  and  Camaryo  delivered  the  goods  in  Brownsville  ? 
Answer.  Yes,  sir. 

Question.  About  how  many  bales  do  you  think  Camaryo  had  of  General  Bee  ? 
Answer.  It  was  about  thirty-five  bales. 

Question.  What  became  of  that  cotton  after  it  was  carried  to  Matamoras  ? 
Answer.  Camaryo  took  it  and  put  it  on  board  the  Elf. 

Question.  YTou  say  that  the  cotton  was  put  on  board  the  Elf ;  how  do  you 
know  it? 

Answer.  I  saw  it  go  on  board,  and  I  came  a  passenger  with  the  cotton  on  the 
bark  Elf  to  New  York. 

Question.  Who  did  Camaryo  sell  goods  to  besides  General  Bee  ? 

Answer.  He  sold  some  to  two  gentlemen;  he  delivered  them  over  on  the 
other  side ;  he  bought  cotton  with  them,  and  brought  it  over  to  Mataraoras; 
paid  for  it  part  in  money,  and  a  part  in  goods.  At  one  time  he  paid  them  $150, 
and  at  another  time  $500,  at  my  house. 

Question.  Do  you  know  the  names  of  the  parties  ? 

Answer.  I  do  not. 

Question.  Were  they  traders  at  Brownsville  ? 

Answer.  My  brother  asked  them  who  they  were,  and  where  they  were  from, 
and  they  said  they  were  commissioners  from  the  confederate  States. 

Question.  Where  did  they  say  that — in  your  house,  or  at  Brownsville  ? 
Answer.  In  my  house,  at  Matamoras. 
Question.  How  came  they  to  say  that  ? 

Answer.  If  they  are  confederate  officers  they  are  proud  of  it,  and  generally 
say  so. 

Question.  Did  you  hear  any  one  else  say  that  they  were  ?  Were  they  generally 
said  to  be  confederate  officers  ? 

Answer.  I  did  not  inquire  any  further. 
Question.  There  were  two  of  them,  you  say  \ 
Answer.  Yres,  sir. 

Question.  How  much  cotton  did  Camaryo  receive  from  them,  should  you  think.' 
Answer.  I  think  he  received  from  them  about  fifty  or  fifty-five  bales. 


172 


NEW  YORK  CUSTOM  HOUSE. 


Question.  Did  lie  pay  for  them  in  goods  ? 

Answer.  A  part  in  goods,  and  a  part  in  money ;  $500  at  one  time,  and  $150 
at  another — the  balance  on  the  cotton. 
Question.  It  was  paid  at  your  house? 
Answer.  Yes,  sir. 

Question.  Did  he  pay  them  in  gold  or  silver? 
Answer.  In  gold  eagles. 
Question.  Did  you  help  count  the  money  [ 
Answer.  Yes,  sir. 

Question.  Do  you  know  where  the  rest  of  the  cotton  came  from  that  was  on 
board  the  Kit'.'    Y'ou  have  accounted  for  about  ninety  bales. 

Answer.  They  got  it  all  from  Brownsville  ;  I  saw  it  coming  over. 

Question.  Do  you  know  of  Oamaryo  having  any  other  cotton  from  Browns- 
ville than  what  was  shipped  on  board  the  Elf] 

Answer.  Y^es,  sir. 

Question.  How  much  \ 

Answer.  1  believe  he  shipped  one  hundred  and  twenty-five  bales  to  Havana, 
in  the  schooner  Echo. 

Question.  That  never  came  here. 
Answer.  No,  sir. 

Question.  How  was  that  paid  for,  do  you  know  ? 
Answer.  That  was  paid  for — a  part  in  goods,  and  a  part  in  money. 
Question.  AYhat  was  the  character  of  the  goods  that  you  saw  sold  to  General 
Bee  and  these  other  men? 

Answer.  Biscuits,  flour,  and  something  in  sacks,  either  coffee  or  rice. 

Question.  Were  there  any  blankets  ? 

Answer.  Yres,  sir,  and  wagons. 

Question.  Were  there  any  boots  and  shoes? 

Answer.  I  did  not  see  any. 

Question.  Who  took  the  wagons  in  Brownsville  ? 
Answer.  Oamaryo  sent  them  over. 

Question.  Who  took  them  at  Brownsville ;  who  bought  them  of  Camaryo  ? 
Answer.  General  Bee ;  he  took  the  wagons. 
Question.  How  about  the  flour,  biscuits,  and  the  sack  goods  ? 
Answer.  He  bought  all  of  them — he  is  acting  as  quartermaster  in  the  con- 
federate service. 

Question.  Where  is  the  Sarah  March  ? 
Answrer.  She  has  gone  to  Europe,  I  believe. 

Question.  Do  you  know  who  owned  her  at  this  time  when  she  went  to  the 
mouth  of  the  Rio  Grande  ? 
Answer.  No,  sir. 
Question.  Who  was  her  captain  ? 
Answer.  I  have  forgotten  his  name. 

By  Mr.  Le  Blond  : 

Question.  Did  you  return  to  New  Y/ork  on  board  the  Elf  with  this  cotton  that 
is  in  controversy  here  ? 
Answer.  Y  es,  sir. 

Question.  Y^ou  came  here  a  passenger  on  the  Elf:  were  you  on  board  of  her 
wThen  the  authorities  seized  her  ? 
Answer.  No,  sir. 

Question.  What  time  did  you  arrive  here? 
Answer.  The  15th  or  16th  of  September,  1863. 


NEW  YORK  CUSTOM  HOUSE. 


173 


Testimony  of  Isaac  P.  Hussey. 

New  York,  March  21,  1864. 

Isaac  P.  Hussey  sworn  and  examined. 
By  the  chairman : 

Question.  Will  you  please  give  the  committee  your  residence  and  business  ? 

Answer.  I  reside  in  New  York  ;  am  not  in  business  now  ;  have  been  out  of 
business  for  some  time,  except  dealing  in  stocks  a  little. 

Question.  The  committee  are  informed  that  you  can  tell  us  something  about 
these  custom-house  bonds,  and  the  manner  in  which  they  were  easily  gotten  up  ? 

Answer.  I  made  a  statement  to  Mr.  Jordan. 

Question.  For  a  specific  purpose  we  want  you  to  recapitulate  your  statement? 

Answer.  Personally,  I  do  not  know  anything  about  how  the  bonds  were  got 
up,  nothing  except  from  hearsay.  I  don't  know  Mr.  H.  B.  Stanton,  (never 
spoke  to  him  in  my  life,)  who  was  said  to  have  cancelled  some  bonds.  Mr. 
Conklin  handed  these  bonds  in  question  to  Mr.  Denison,  in  my  presence  ;  I  had 
them  in  my  hands  ;  1  did  not  make  any  negotiation  for  them  ;  Mr.  Conklin 
made  the  negotiation  through  a  broker  ;  I  think  his  name  was  Smith.  I  will 
tell  you  the  way  I  happened  to  know  anything  about  this  matter.  But  first, 
let  me  remark  that  I  Avas  appointed  by  Mr.  Chase  to  some  sort  of  place,  (I  don't 
know  exactly  what  the  appointment  might  be  considered  to  be,)  and  I  was 
stationed  in  Baltimore  for  the  first  eighteen  months  of  this  administration, 
ostensibly  from  the  custom-house,  but  I  did  not  have  anything  to  do  with  it, 
and  reported  all  I  did  to  Mr.  Chase.  My  duties  related  to  the  contraband  trade 
on  the  Chesapeake  bay.  I  had  been  in  the  forwarding  business  seven  or  eight 
years  on  the  lakes  and  the  Erie  Canal,  and  connected,  as  it  was,  with  the  rail- 
roads, I  had  become  pretty  familiar  with  the  different  modes  of  transportation. 
While  in  New  York  I  discovered  that  there  was  a  good  deal  of  contraband 
trade  going  on  from  here,  and  I  went  in  and  told  Mr.  Barney,  along  in  July, 
1863,  about  it.  I  had  no  connexion  with  the  government  then,  and  it  was 
entirely  voluntary  on  my  part.  I  supposed  there  were  a  great  number  of  Jews 
doing  a  large  business  in  running  the  blockade  which  people  generally  did  not 
know  anything  about.  Mr.  Barney  did  not  seem  to  pay  any  attention  to  what 
I  said  about  it.  I  told  him  of  the  steamer  that  was  then  loading,  (the  Duoro,) 
a  Spanish  steamer,  and  Mr.  Barney  said  it  could  not  be  possible.  She  was 
afterwards  captured  by  some  of  our  blockaders  with  the  same  cargo  that  she 
had  from  here.  About  this  time  I  accidentally  overheard  some  people  talking 
about  getting  up  bonds,  and  they  said  it  could  be  done  very  easily.  I  satisfied 
myself  that  this  was  true  as  well  as  I  could,  and  went  and  told  Mr.  Barney 
about  that.  He  did  not  pay  any  attention  to  it  at  first,  but  finally  he  said  he 
was  engaged  with  some  other  matters,  and  he  would  introduce  me  to  Mr.  Hans- 
com.  1  told  Mr.  Hanscom  what  I  knew  about  the  matter,  and  he  seemed  to  be 
anxious  to  find  out  about  it.  After  that  I  went  into  Mr.  Denison's  office,  (the 
naval  office,)  after  I  had  seen  some  of  the  bonds,  and  told  him  they  were  getting 
up  those  bonds. 

Question.  Did  you  say  that  you  had  told  Mr.  Barney  ? 

Answer.  Yes,  sir;  in  July,  soon  after  it  occurred.  Some  of  the  bonds  were 
not  over  three  or  four  days  old.  I  told  Mr.  Barney  about  it,  and  he  did  not 
seem  to  pay  any  attention  to  it.  I  thought  he  did  not  regard  my  information 
much,  and  1  thought  I  would  not  give  him  any  more.  Mr.  Denison  seemed  to 
be  very  anxious  about  it.  I  told  him  that  I  thought  I  could  arrange  it  so  that 
he  could  see  some  of  the  cancelled  bonds  that  were  not  a  week  old.  He  told 
me  in  a  day  or  two  afterwards  that  Mr.  Jordan  was  coming  on  here,  and  he 
would  like  to  see  some  of  these  bonds.  He  brought  Mr.  Jordan  down  to  Mr. 
Conklin's  place,  where  1  have  a  desk.  Mr.  Jordan,  through  the  figuring  of  two 
or  three  of  them,  got  the  bonds  (eight  or  nine)  in  his  hands  which  had  been  can- 


174 


NEW  YORK  CUSTOM  HOUSE, 


colled  by  that  one  arrangement ;  some  of  them  were  three  or  four  days  old. 
What  the  arrangement  was  I  don't  know,  except  what  other  people  say.  I  don't 
know  Mr.  Stanton  at  all. 

Question.  Did  Mr.  Conklin,  as  you  understand,  act  as  the  negotiator  for 
these  bonds  ? 

Answer.  I  think  he  made  the  negotiation  with  a  broker,  (Smith.)  I  think  that 
Mr.  Conklin's  whole  statement  has  been  made  to  Mr.  Jordan  and  sworn  to. 
Mr.  Conklin  very  willingly  told  all  he  knew  about  it.  I  think  he  drew  his  own 
clu  cks  lor  the  amount  of  money  he  paid. 

Question.  Do  you  know  the  amount  he  paid  for  each  bond  ? 

Answer.  I  think  his  check  book  will  show  exactly  what  he  paid  ;  the  amounts 
run  from  500  to  800  or  1,000  dollars,  depending  upon  the  amount  of  the  cargo. 
When  Stanton  laid  it  to  his  son.  he  (Conklin)  said  that  could  not  be,  for  he 
stood  in  the  hall  when  the  broker  went  in  and  made  the  negotiation.  There  was 
some  difference,  and  finally  the  broker  went  in  and  had  a  private  interview 
with  Stanton  himself,  and  he  saw  it,  and  the  broker  came  back  and  assented  to 
the  reduction. 

Question.  In  whose  name  was  the  check  given? 

Answer.  I  don't  know. 

Question.  We  have  had  Smith  before  us,  and  he  swears  that  the  negotiation 
was  Rrith  the  young  man;  he  does  not  admit  this  matter  that  you  have  now 
stated. 

Answer.  He  denied  the  whole  of  it  one  day,  and  the  next  morning  he  said 
that  every  word  he  had  said  the  night  before  was  a  lie.  He  and  Stanton  were 
seen  at  the  Fifth  Avenue  Hotel  that  night  together,  as  I  was  informed.  There 
did  not  seem  to  have  been  anybody  in  the  custom-house  who  would  give  any- 
body any  sort  of  encouragement  but  Mr.  Denison  and  Mr.  Han  §  com.  1  took  a 
great  deal  of  pains  to  find  out  facts  in  regard  to  blockade  running  ;  I  sent  a 
man  on  board  the  Duoro,  to  engage  his  passage  to  Wilmington,  on  purpose  to 
see  what  they  were  doing,  and  paid  his  expenses.  1  spent  $150  in  what  I  did, 
and  received  no  encouragement,  and  quit.  I  told  Mr.  Barney  that  this  steamer 
Jose,  (-lie  used  to  be  called  the  Eagle,)  was  bought  for  the  blockade  business; 
I  had  it  from  a  man  who  I  thought  knew.  I  told  Mr.  Barney  of  another  steamer 
that  was  built  here  for  a  Spanish  house;  that  she  belonged  to  southern  people 
undoubtedly,  and  that  she  was  going  there  for  the  blockade  business.  She 
went  off  in  a  little  while,  and  I  saw  three  or  four  weeks  after  a  notice  of  her 
arrival  at  Matamoras  ;  she  was  chased  by  one  of  our  blockaders,  but  they  did 
not  catch  her. 

By  Mr.  Rollins  : 

Question.  You  say  you  gave  Mr.  Barney  information  about  the  steamer  Duoro  '! 
Answer.  I  told  him  about  it  along  in  July. 
Question.  What  did  you  tell  him  in  reference  to  her  I 

Answer.  1  told  him  she  was  going  to  run  the  blockade ;  that  I  had  reason  to 
believe  the  fact  to  be  so. 

Question.  You  had  evidence  that  satisfied  you? 

Answer.  Yes,  sir ;  and  he  said  the  only  way  we  could  do  anything  was,  if 
we  could  find  any  goods  on  board  of  her  and  establish  the  fact  they  were  in- 
tended for  Wilmington  or  Charleston,  we  might  stop  the  goods. 

Question.  What  reason  had  you  to  satisfy  you  1 

Answer.  I  sent  a  man  on  board  of  her.  I  was  told  by  a  man  who  I  supposed 
knew,  and  I  sent  an  Englishman  on  board  of  her  and  engaged  his  passage  to 
Wilmington;  the  mate  and  the  engineer  told  him  what  the  programme  was. 

Question.  Who  owned  the  vessel  ? 

Answer.  I  do  not  remember ;  I  think  it  is  Gonzales. 

Question.  Was  she  freighted  by  her  owners  ? 


NEW  YORK  CUSTOM  HOUSE. 


175 


Answer.  I  think  she  was,  but  I  don't  know  that  positively.  I  think  they 
advertised  for  freight ;  I  sent  a  man  down  to  see  if  they  could  take  some  freight, 
and  they  said  they  thought  they  were  full.  They  had  advertised  for  freight  as 
a  blind,  and  then,  when  people  came  to  ship,  they  would  say  that  they  were 
full ;  that  her  cargo  was  all  engaged ;  it  is  a  common  dodge  here.  I  have 
known  a  great  deal  about  these  things  here ;  the  reason  I  happened  to  look  at 
these  things  was  because  I  was  doing  that  kind  of  work  in  Baltimore. 

By  Mr.  Le  Blond: 

Question.  What  were  your  particular  duties  under  the  appointment  that  you 
received  from  Mr.  Chase? 

Answer.  They  were  special  instructions  to  look  up  and  find  out  facts  about 
blockade  running;  detecting  and  exposing  frauds  upon  the  revenue.  I  reported, 
through  Mr.  Chase,  to  the  War  Department.  When  Mr.  Scott  was  Assistant 
Secretary  of  War  I  did  a  good  deal  with  that  office  ;  after  Mr.  Stanton  got  there 
1  resigned. 

Question.  Was  the  fact  of  your  having  acted  in  that  capacity  known  to  Mr. 
Barney  at  the  time  you  communicated  these  facts  to  him  ? 

Answer.  I  think  it  was ;  I  used  to  meet  Mr.  Barney  very  frequently  in  Mr. 
Chase's  private  office. 

Question.  Was  the  position  you  formerly  occupied  known  to  Mr.  Ilanscom 
and  Mr.  Denison,  or  either  of  them? 

Answer.  I  don't  know ;  I  don't  much  believe  it  was  to  Hanscom ;  I  think 
possibly  Denison  might  have  known  it. 

Question.  You  made  this  remark  at  the  opening  of  your  examination,  that 
you  heard  talk  about  the  getting  up  of  these  bonds  ;  who  did  you  hear  talking 
about  procuring  -these  bonds  in  which  they  were  abstracted  ? 

Answer.  The  first  I  heard  of  it  was  a  conversation  between  Mr.  Conklin  and, 
I  think,  a  member  of  the  house  that  owned  the  vessel;  I  did  not  know  him 
personally.  I  do  not  know  whether  Mr.  Conklin  intended  it  for  me  to  hear,  but 
he  had  no  hesitation  in  speaking  about  it  afterwards. 

Question.  You  also  stated  that  you  saw  these  bonds  after  they  were  taken 
from  the  custom-house  ? 

Answer.  Yes,  sir. 

Question.  And  after  they  were  cancelled? 
Answer.  Yes,  sir. 

Question.  In  whose  handwriting  were  they  cancelled  ? 

Answer.  H.  B.  Stanton's  name  was  signed  to  the  cancellation ;  I  don't  know 
his  signature. 

By  the  chairman  : 

Question.  Upon  these  eight  or  nine  bonds  that  Mr.  Jordan  saw  was  "  can- 
celled" written? 
Answer.  Yes,  sir. 

Question.  Do  you  understand  the  question  ? 

Answer.  Let  me  correct  myself:  I  saw,  inside,  Mr.  H.  B.  Stanton's  name.  I 
did  not  observe  whether  that  signature  was  to  the  cancellation,  or  whether  it 
was  his  official  signature  when  he  received  the  bonds.  My  impression  is  that 
his  signature  appears  there  as  the  officer  who  cancelled  the  bonds,  the  same  as 
those  that  are  returned  with  the  consul's  certificate. 

By  Mr.  Rollins : 
Question.  Do  you  say  you  think  they  were  cancelled  ? 
Answer.  I  think  they  were  ;  I  may  be  mistaken. 
Question.  Are  you  acquainted  with  Samuel  Myers? 

Answer.  Yes,  sir;  I  met  him  some  time  in  July,  1863,  on  the  ferry-boat  be- 
tween here  and  Staten  Island  ;  he  lived  at  Staten  Island.    1  had  seen  him  a 


176 


NEW  YORK  CUSTOM  HOUSE. 


good  many  times,  but  had  never  spoken  to  him  up  to  the  time  I  met  him  upon 
this  occasion  ;  should  not  have  spoken  to  him  then  had  he  not  spoken  to  me 
first.  He  commenced  talking  about  the  war,  and  said  it  was  impossible  to  whip 
the  south  ;  that  the  south  would  get  her  independence,  and  it  was  a  good  time 
to  make  money.  1  agreed  with  him  generally  ;  had  my  motive  for  so  doing. 
Then  he  said  he  had  been  four  or  five  times  to  Nassau,  and  once  to  Wilmington  ; 
that  he  had  bought  goods  for  several  large  dealers  ;  had  filled  a  good  many 
orders  tor  Charleston  and  Wilmington;  that  he  had  bought  as  high  as  8700,000 
<>r  ^S00,000  in  exchange  at  a  time,  and  that  his  son-in-law  (Woolff)  had 
made  two  millions  of  dollars  ;  then  he  said,  after  half  an  hour's  conversation, 
that  there  had  been  some  goods  seized  ;  his  co-workers  had  not  treated  him 
well ;  he  wanted  to  go  out  in  the  Corsica  on  her  next  trip ;  wanted  to  get  all 
the  exchange  he  could,  (he  said  he  could  get  a  million  of  exchange  in  new  orders,) 
and  wanted  to  get  in  with  some  government  officer  here  that  would  play  fair 
with  him  ;  he  wanted  to  go  out  there,  and  be  the  bearer  of  all  this  exchange, 
by  the  mail  that  goes  from  the  south  by  way  of  Nassau,  and  then  he  wanted  an 
arrangement  with  Mr.  Hanscom,  or  somebody  else,  (I  suggested  Mr.  Hanscom,) 
by  which  the  steamer  was  to  be  boarded  as  she  came  in  here  and  all  this  prop- 
erty seized;  he  thought  that  the  blockade  business  was  probably  played  out, 
and  the  best  chance  was  to  make  a  big  haul  upon  these  fellows  who  were  in  it, 
and  divide  up.  I  immediately  went  up  to  Denison's  office,  and  he  was  not  in  ; 
I  then  went  in  to  see  Hanscom,  and  told  him  the  programme,  and  I  made  an 
appointment  for  Hanscom  to  meet  me  and  the  Jew  that  evening  about  4  o'clock, 
and  lie  stated  substantially  the  same  thing  to  Hanscom  ;  he  stated  what  he  had 
been  doing,  and  that  a  large  amount  of  money  could  be  made  out  of  it — he 
thought  a  million  of  dollars — to  be  divided  among  us  three.  I  told  Hanscom 
before  we  went  in  not  to  run  against  him  any,  but  to  assent  to  it,  if  he  did  not 
say  anything;  finally  we  got  the  whole  thing  arranged;  he  was  to  go  on  the 
Corsica,  and  he  said,  as  he  got  up  to  go  out,  "  of  course,  my  expenses  will  be 
paid."  1  said,  "yes."  The  day  before  the  steamer  sailed  he  came  in  for  a 
thousand  dollars  in  gold  for  his  expenses.  I  said  to  him  that  I  did  not  say  any- 
thing to  Hanscom  about  that ;  that,  as  a  matter  of  course,  his  expenses  would 
be  taken  out  of  this  property  after  he  had  got  it ;  he  said  that  he  must  have  the 
money  or  he  could  not  go  ;  he  was  very  anxious  to  see  Hanscom  ;  I  sent  up 
for  Hanscom  to  come  down  ;  Hanscom  said,  "  I  cannot  advance  you  the  money  ; 
of  course  your  expenses  will  be  paid  ;"  he  went  on  to  say  that  things  were 
very  high  in  Nassau,  and  it  cost  $5  a  day  in  gold  to  live  there,  and  he  had  to 
drink  a  good  deal  champagne  with  these  blockade  runners.  Hanscom  says  to 
him,  I  cannot  advance  you  any  money,  but  as  soon  as  you  get  this  property 
then  render  your  bill  of  expenses  and  it  will  be  paid  out  of  the  proceeds  ;  he 
flew  into  a  passion  and  went  off,  and  I  did  not  see  anything  more  of  him  until 
the  Corsica  sailed ;  the  Corsica  sails  at  12  o'clock  m.  generally  ;  she  lies  at 
Jersey  City ;  I  thought  I  would  go  and  see  whether  Myers  went  in  her  or  not; 
I  never  had  any  faith  in  him  from  the  start ;  what  1  thought  he  wanted  was  to 
steal  a  thousand  dollars  in  addition  to  what  he  was  doing ;  I  went  over  and 
found  him  there  with  his  family  ;  he  sent  his  son  and  I  guess  his  daughter  in 
her ;  the  Corsica  was  anchored  in  the  stream,  and  pretty  soon  he  got  on  the 
tug-boat  and  went  out  to  her;  I  then  concluded  he  was  going,  although  he 
came  up  where  I  was  and  said  he  was  not  going,  but  was  sending  his  daughter 
who  married  a  Woolff;  I  came  home  and  left  him;  I  saw  him  the  next  morn- 
ing, and  he  said  it  was  very  foolish  for  Mr.  Hanscom  not  to  have  paid  his 
expenses,  as  we  could  have  made  a  good  deal  of  money  out  of  it,  but  he  was 
not  going  to  pay  his  own  expenses  ;  that  is  pretty  much  all  1  know  about 
Myers. 

Question.  Did  Mr.  Hanscom  make  any  proposition  to  Myers  about  cancella- 
tion of  bonds  in  any  invoice  ? 


NEW  YORK  CUSTOM  HOUSE. 


177 


Answer.  I  never  heard  him  make  any  ;  I  was  coming  to  what  was  said  about 
bonds ;  a  few  weeks  after  that  they  seized  the  steamer  Jose,  originally  called 
the  Eagle ;  she  was  a  prize  vessel,  and  bought  by  Eneas,  when  her  name  was 
changed,  and  she  was  put  under  the  British  Hag;  when  they  seized  her  Myers 
came  to  me  and  wanted  to  know  if  the  thing  could  not  be  arranged  ;  I  told  him 
I  didn't  know,  but  I  guessed  so;  he  wanted  me  to  see  if  I  could  arrange  it; 
then  he  says,  "Eneas  gave  a  little  bond  for  $3,000,  a  day  or  two  ago,  and  1 
want  to  get  it  up  for  him."  I  told  him,  during  all  this  conversation,  that  they 
were  cancelling  these  bonds  at  the  custom-house  for  pay,  and  he  wanted  to  know 
what  was  the  lowest  amount  the  bond  could  be  got  up  for;  I  went  up  to  see 
Hanscom  and  Denison,  and  that  was  when  they  had  got  these  other  bonds  ;  1 
met  Conklin  and  asked  him  to  see  if  this  broker  (Smith)  could  get  another  one; 
Oonklin  went  to  see  Smith,  and  Smith  said  he  could  get  it,  bul  he  could  not  get 
it  for  less  than  $";00;  he  (Myers)  pretended  that  was  too  much:  I  told  him 
that  I  could  get  it  for  $300,  and  he  said  he  would  see  ;  he  said  Eneas  would 
not  give  it  ;  he  wanted  to  make  $100  out  of  it  himself,  and  lie  would  not  let  me 
know  until  the  next  morning  ;  then  he  said  he  would  give  $350;  during  the 
time  we  were  bothering  back  and  forth  about  that,  there  was  something  leaked 
out  about  these  bonds,  and  the  broker  said  he  could  not  get  it  at  all,  and  so  the 
thing  stopped  there.  Mr.  Stanton  was  constantly  urging  the  naval  officer  about 
the  release  of  the  Jose.  1  was  in  Mr.  Denison's  office  two  or  three  times,  and 
Stanton  came  in  and  said,  "  We  must  dispose  of  this  Jose  ;  the  owners  are  being 
deprived  of  her  services;  it  is  a  miscellaneous  cargo,  belonging  to  other  indi- 
viduals, loyal  citizens."  He  was  urging  Mr.  Denison  to  pass  her  through  his 
department;  from  his  action  and  manoeuvres  almost  anybody  accustomed  to 
looking  up  things  could  not  help  coming  to  the  conclusion  that  he  was  in  the  boat. 

Question.  Do  you  know  about  any  negotiations  in  reference  to  that  vessel, 
other  than  those  you  have  named  ? 

Answer.  I  had  some  conversation  with  Myers,  in  which  he  asked  me  how 
much  she  could  be  discharged  for;  I  told  him  I  would  see,  but  there  was  never 
anything  serious  transpired  between  me  and  Denison  and  Hanscom. 

Question.  They  never  authorized  you  to  make  any  proposition? 

Answer.  No,  sir. 

Question.  Neither  to  Eneas  nor  to  Myers  1 

Answer.  In  no  shape  whatever;  I  said  what  I  did  to  him  as  a  part  of  the 
programme. 

By  the  chairman  : 

Question.  Did  you  ever  suppose,  from  anything  you  heard  or  knew,  that 
Palmer  had  any  knowledge  of  the  abstraction  or  cancellation  of  these  bonds  ? 
Answer  I  cannot  say  that  I  know  anything  in  regard  to  it. 

Testimony  of  Isaac  P.  Hussey. 

New  York,  April  12,  1864. 

Isaac  P.  Hussey  recalled.. 
By  the  chairman : 

Question.  In  your  former  testimony  you  stated  that  the  broker,  Henry  C- 
Smith,  and  II.  B.  Stanton,  were  seen  together  at  the  Fifth  Avenue  Hotel,  as 
you  were  informed,  between  the  two  different  occasions  of  Smith's  being  called 
before  Mr.  Jordan,  the  Solicitor  of  the  Treasury  ? 

Answer.  Yes,  sir,  I  was  so  informed.  It  was  a  week  or  ten  days  before  Mr. 
Stanton  was  suspended. 

Question.  Who  gave  you  the  information  1 

Answer.  A  young  man  by  the  name  of  S.  Brownell,  1  think. 

Question.  Where  is  Mr.  Brownell  now  l 
H.  Rep.  Com.  Ill  12 


ITS 


NEW  YORK   OrSTOM  HOUSE 


Answer.  1  am  informed  that  he  is  with  the  army  of  the  Potomac. 

Question.  Did  you  ever  hear  or  know  of  any  other  person  seeing  them  there 
at  any  other  time  together  ? 

Answer.  I  never  heard  of  his  being  there  at  any  other  time. 

Question.  The  committee  have  information  that  an  attempt  has  been  made  to 
smuggle  a  large  amount  of  goods  from  Canada  into  the  United  States,  and  that 
you  have  some  knowledge  of  it.  If  so,  they  would  be  glad  to  hear  any  state- 
ment that  you  may  have  to  make  in  regard  to  it. 

Answer.  I  could  give  you  a  far  better  and  more  intelligible  statement  in  re- 
gard to  the  matter  if  I  could  have  a  little  time  to  get  at  the  facts.  There  are 
some  parties  here  who  are  engaged  in  this  business.  I  have  information  that 
there  has  been  a  submarine  boat  built  here  which  lias  gone  out  from  here  within 
a  week,  and  which  is  intended  to  be  used  for  this  purpose.  The  builder  of  the 
boat  told  me  that  he  had  been  told  that  1  was  a  friend  of  the  south,  and  that  I 
could  help  him.  He  sat  down  and  gave  me  information  about  this  thing.  He 
said  that  they  could  run  the  boat  ten  or  twenty  feet  under  the  water,  no  matter 
howr  strong  the  wind  might  blow — she  would  not  be  at  all  affected  by  it ;  that  six 
men  could  propel  her  six  miles  an  hour ;  that  he  had  sold  this  boat,  but  for  no 
other  purpose  than  that  of  smuggling. 

Question.  What  is  his  name? 

Answer.  John  W.  Grider.  He  resides  at  368  Eighth  street  ;  and  he  is  a 
machinist  by  trade,  and  a  boat-builder,  as  I  am  informed. 

Question.  When  did  you  have  this  conversation  with  him  .; 

Answer.  I  had  it  four  or  five  days  ago  at  the  police  headquarters.  They  say 
that  he  is  crazy.  His  room  adjoins  mine  ;  and  he  heard  somebody  call  me  by 
name,  and  he  introduced  himself  to  me  and  commenced  talking.  He  said  that 
they  had  found  a  duplicate  bill  of  sale  of  one  of  the  boats  that  he  had  sold  last 
summer  to  Lamar,  a  Georgia  man,  who  has  figured  so  conspicuously  in  connexion 
with  the  rebels  as  agent  of  the  confederate  government  abroad.  He  says  that 
he  offered  to  give  it  to  the  government,  and  to  furnish  a  crew  to  go  with  her  to 
convince  them  how  it  Avould  work ;  that 'he  finally  agreed  with  Mr.  Webb,  the 
ship-builder,  if  he  would  furnish  money,  take  hold  of  it,  and  introduce  it,  he 
would  give  him  half;  that  Mr.  Webb  sent  him  to  see  Mr.  Wood,  naval  engineer, 
but  they  wanted  another  quarter,  and,  as  he  thought,  by  the  time  it  would  be 
divided  round  there  would  be  nothing  left  for  him,  he  backed  out.  According 
to  his  story,  there  was  a  regular  conspiracy  to  force  his  invention  from  him.  He 
had  a  boat  built,  and  had  an  engagement  to  take  this  naval  engineer  and  Mr. 
Webb  out  on  a  trial  trip,  to  show  them  what  he  could  do;  but  a  storm  came  on, 
and  they  waited  until  the  next  day,  but  they  did  not  go  then.  He  would  not 
wait  any  longer,  and  he  sold  the  boat  to  somebody  else.  He  has  got  some  sort 
of  combination  of  machinery  in  this  boat  that  extracts  the  air  from  the  water, 
that  enables  the  men  to  breathe  under  the  Avater.  He  said  they  had  twelve 
pumps  in  the  first  boat,  but  it  was  so  arranged  now  that  one  pump  would  furnish 
all  the  air  that  a  crew  of  fifty  men  would  want. 

Question.  Do  you  believe  that  he  is  crazy,  as  reported  ? 

Answer.  I  do  not  believe  that  he  is. 

Question.  Does  he  say  where  this  boat  has  gone  to  1 

Answer.  He  would  not  tell  me  very  distinctly.  He  said  that  the  persons 
who  had  bought  this  boat  bought  it  to  smuggle  tobacco  with.  Just  as  he  said 
that  the  door  opened,  and  he  stopped,  and  I  did  not  see  him  after  that.  I  don't 
know  whether  he  meant  that  it  was  for  smuggling  into  the  British  Provinces,  or 
out  of  Richmond,  or  what  it  was.  He  said  that  they  could  take  850,000  worth 
of  goods  and  go  right  along  under  the  bottom  of  vessels,  and  into  any  town  and 
out  again,  every  hour  of  the  day,  and  with  no  fear  of  the  gunboats ;  that  they 
could  propel  her  six  miles  an  hour  twenty  feet  under  water;  and  that  they  had 


NEW  YORK  CUSTOM  HOUSE. 


179 


an  apparatus  by  which  they  could  see  three  hundred  yards;  and  that  they  can 
stay  under  water  fifty  feet  for  twelve  hours. 

Question.  Is  he  a  man  of  means? 

Answer.  That  I  don't  know. 

Question.  Do  you  know  his  nativity? 

Answer.  I  do  not.  My  impression  is  that  he  is  an  American.  I  think  he 
has  got  somebody  behind  him  that  backs  him. 

Question.  Will  you  give  the  committee  what  information  you  may  have  relative 
to  the  smuggling  of  goods  from  Canada  into  this  country? 

Answer.  I  have  had  information  for  the  last  four  or  five  months  that  I  could 
rely  upon,  that  there  was  a  large  amount  of  business  doing  in  that  way  all  the 
time.  I  spent  one  evening  in  talking  the  matter  over  with  a  friend -of  mine — 
Captain  Perkins,  who  was  a  native  of  St.  Johns,  and  who  had  lived  at  Montreal 
ten  or  twelve  years.  He  said  it  was  perfectly  astonishing  to  see  the  scows, 
yawls,  and  all  sort  of  craft  that  were  busy  in  running  across  the  St.  Lawrence 
and  smuggling  goods  at  different  points.  I  had  a  great  many  conversations  with 
Mr.  Hanscom  and  the  custom-house  people  about  it.  I  had  arranged  a  plan  to 
take  Captain  Perkins  with  me  and  go  to  Canada,  in  order  to  make  an  investi- 
gation of  the  whole  thing,  but  I  believe  Mr.  Barney  discouraged  it  in  some  way. 
Something  was  said  to  Mr.  Harrington,  the  Assistant  Secretary  of  the  Treasury, 
when  he  was  here,  about  it;  but  Mr.  Harrington  said  that  Mr.  Barney  had 
charge  of  that  matter,  and  there  was  nothing  done  about  it.  There  was  a  man 
here  by  the  name  of  Sutton  who  gave  me  information  about  a  Mr.  Gairy,  now 
in  Fort  Warren,  as  being  engaged  in  this  trade;  and  there  was  also  another 
man  by  the  name  of  Rothschild  who  told  me  the  same  thing.  Rothschild,  I 
think,  is  a  Jew,  and  used  to  belong  to  a  house  in  Barclay  street.  About  the 
time  that  this  information  came  to  me  about  this  man  Gairy,  Rothschild  went  to 
Europe,  and  it  was  intimated  to  me  by  different  persons  that  Rothschild  was 
one  of  the  European  purchasers  for  this  organization  here. 

Question.  What  organization  do  you  have  reference  to  ? 

Answer.  The  organization  that  I  speak  of  is  in  connexion  with  the  Frenchman 
Gairy  and  a  house  in  Cedar  street.  I  do  not  want  to  testify  to  anything  I 
don't  know  anything  about,  but  I  do  not  suppose  it  would  be  a  difiicult  matter 
to  find  three  or  four  pretty  large  concerns  here  that  are  engaged  in  smuggling 
from  the  Canadas  into  the  United  States  all  the  time.  I  do  not  suppose  there 
is  a  question  about  it ;  they  do  it  very  nicely,  and  have  a  great  many  ways  of 
doing  it. 

Question.  Suppose  you  give  us  the  information  upon  which  you  acted  when 
you  went  to  see  Mr.  Hanscom  and  Mr.  Denison  with  reference  to  this  smuggling 
business,  and  tell  us  what  was  done  in  regard  to  it  ? 

Answer.  The  first  information  I  had  about  this  French  Jew  organization  was 
given  me  by  Sutton,  who  had  been  in  Fort  Lafayette.  Gairy  was  a  confidential 
friend  of  his,  and  had  told  him  about  it.  Gairy  had  lived  in  Tampico,  Mexico, 
and  Sutton  was  a  Texas  man,  and  had  been  a  prisoner  in  Fort  Lafayette,  and 
also  in  Fort  Warren,  and  he  and  Gairy  became  very  intimate.  Sutton  I  believe 
to  be  a  very  honest  man;  and  he  told  me  all  about  this  thing.  The  last  word 
of  advice  he  gave  to  Gairy  was  to  come  out  and  tell  all  he  knew  frankly,  and  it 
would  be  better  for  him  than  to  take  any  other  course  ;  and  Sutton  supposed 
when  I  went  over  to  Fort  Warren  to  see  Gairy  that  he  would  not  lies. rate  to 
tell  me  anything  he  knew  about  this  matter. 

Question.  What  induced  you  to  go  to  Fort  Warren? 

Answer.  This  information  of  Sutton's,  that  Gairy  knew  all  about  it.  He  said 
that  there  was  a  combination  of  twenty  or  more,  and  that  two  millions  of  ex- 
change had  been  bought  up,  and  it  was  his  opinion  that  there  was  a  house  here 
connected  with  them;  and  he  cautioned  me  to  give  them  no  clew  as  to  what  I 
was  going  to  Boston  for. 


180 


NEW  YORK   CUSTOM  HOUSE. 


Question.  Upon  what  authority  did  you  go  to  Boston  1 

Answer.  I  stated  the  information  I  had  got  to  Mr.  Denison.    As  near  as  I 
can  remember  I  did  not  have  any  particular  authority. 
Question.  What  time  was  this? 

Answer.  I  think  it  was  the  fore  part  of  August.  Mr.  Denison  said  to  me,  "If 
I  were  in  your  place  I  would  follow  that  thing  up.  If  you  have  got  any  evi- 
dence that  what  this  man  has  told  you  is  correct,  you  can  make  money  faster  by 
it  than  in  any  other  way."  He  was  speaking  of  it  in  a  personal  way,  as  if  that 
would  repay  me.  While  I  was  thinking  the  matter  over,  I  received  a  letter 
from  Montreal,  saying  that  there  had  been  8000,000  worth  of  goods  smuggled 
across  the  week  before.  I  took  that  letter  to  Mr.  Denison  and  Mr.  Hanscom, 
and  it  was  finally  settled  that  Mr.  Hanscom  was  to  give  me  a  letter  to  the  deputy 
collector,  Mr.  French,  at  Boston,  a  friend  of  his,  by  which  I  would  be  enabled 
to  see  the  prisoner  Gairy.  He  wrote  me  a  simple  letter  of  introduction,  and 
told  me  he  had  sent  a  long  letter,  by  mail,  to  Mr.  French,  who  had  charge  of 
the  seizure  department  in  the  custom-house  there,  explaining  the  whole  thing 
privately.  I  took  Mr.  Hanscom's  letter  of  introduction  ;  went  with  it  to  General 
Dix's  office.  General  Dix  was  not  in.  I  staid  there  two  hours  waiting  for 
him.  I  finally  explained  to  Colonel  Van  Buren,  of  General  Dix's  staff,  what  I 
wanted,  and  he  took  a  copy  of  my  letter  of  introduction  and  a  memorandum  of 
what  I  wanted  to  accomplish.  He  said  to  me,  "If  General  Dix  does  not  come 
in  time  I  will  telegraph  to  Colonel  Dimmick  to  allow  you  to  go  in  Fort  Warren. 
I  think  it  is  all  right."  I  thereupon  came  down  town,  got  my  carpet  bag,  and 
took  the  cars  on  the  Shore  Line  road  that  evening  for  Boston,  at  4  or  5  o'clock. 
When  I  got  to  the  custom-house  at  Boston  they  seemed  to  know  all  about  it, 
and  the  collector  wrote  a  letter  and  sent  a  man  down  with  me  to  the  fort. 
Whether  they  were  instructed  by  General  Dix  to  let  me  in  or  not,  I  do  not 
know,  but  they  let  me  in  without  trouble ;  and  after  I  got  in,  they  sent  for  this 
man  Gairy,  and  left  us  alone  together.  I  introduced  myself  as  coming  from 
Sutton,  who  had  been  in  Fort  Lafayette  and  Fort  Warren  with  him,  and  after 
some  conversation,  making  the  way  as  smooth  as  I  could,  I  told  him  what  I 
wanted  ;  and  he  said  that  he  had  not  any  information  about  it.  "Well,"  says  I, 
"Mr.  Sutton  says  you  have  ;  and  if  so,  it  is  for  your  advantage  to  disclose  it,  be- 
cause if  you  give  the  information  and  there  is  nothing  in  it  against  you  more 
than  what  you  say  there  is,  why,  the  government  would  be  induced  to  let  you 
out  for  the  sake  of  your  information  ;  that  would  be  of  far  more  importance 
than  to  keep  you  here ;  and  I  can  present  your  case  to  individuals  who  have 
influence  with  the  government,  and  who  will  see  that  the  arrangement  is  carried 
out."  He  was  a  little  cautious  about  what  he  said,  and  he  wanted  to  know  if  it 
was  necessary  for  anybody  else  to  know  about  it.  I  told  him  that  there  was 
no  necessity  for  any  exposure ;  that  he  could  make  his  statement  before  some 
public  officer  selected  for  that  purpose  ;  that  there  need  be  no  trouble  about  it; 
that  it  was  very  easy  to  manage  the  details.  Then  he  spoke  of  a  house  in 
Cedar  street,  and  asked  me  whether  it  would  be  necessary  for  them  to  know 
about  it.    I  told  him,  not  at  all. 

Question.  What  house  is  this  ? 

Answer.  I  cannot  remember  their  names ;  it  is  a  French  house,  cor- 
respondents of  Gairy,  and  I  know  of  them  in  connexion  with  this  mat- 
ter. I  told  him  that  it  would  not  be  necessary  to  tell  them  anything 
about  it,  and  that  no  one  need  know  anything  about  it  except  some  one  officer 
of  the  government  who  would  be  authorized  to  act.  I  told  him  furthermore,  as 
an  inducement  to  get  what  I  wanted  from  him,  that  he  could  make  some  money 
out  of  it;  that  he  could  come  in  for  a  per-centage  of  the  informer's  share. 
Then  he  mentioned  about  his  having  told  Sutton  that  he  would  give  $5,000  to 
be  got  out,  and  I  told  him  that  I  did  not  want  his  money  ;  all  I  wanted  was 
this  information  ;  and  it  would  be  all  right  if  he  would  deposit  $2,500  in  some 


NEW  YORK  CUSTOM  HOUSE. 


181 


bank,  or  with  some  good  house  here,  that  his  correspondents  would  be  satisfied 
with,  and  that  I  would  be  satisfied  with,  and  would  write  to  his  eorrespondents 
instructing  them  to  deposit  this  money,  as  a  guarantee  that  lie  would  do  as  he 
had  agreed  when  he  got  away  from  there — that  is,  disclose  all  about  this  smug- 
gling ;  that  I  did  not  want  to  get  him  away  and  then  find  that  his  information 
amounted  to  nothing.  He  said  he  would  tell  what  he  knew  to  one  man  ;  he  did 
not  want  anybody  else  by  ;  did  not  want  it  made  public ;  and  he  asked  me  the 
question  again  if  it  would  be  necessary  for  any  of  his  correspondents  here  to 
know  it,  or  if  they  would  probably  find  it  out.  I  told  him  no  ;  that  he,  would 
be  brought  here  for  examination;  that  his  case  would  be  examined,  and  he 
would  not  necessarily  have  any  intercourse  with  anybody  except  the  govern- 
ment officer  who  would  get  the  information  from  him.  That  seemed  to  satisfy 
him,  and  I  came  away  with  the  understanding  that  he  was  to  write  to  his  cor- 
respondents here  that  night,  or  the  next  morning,  to  deposit  this  money;  and 
after  that  was  done,  I  intended  to  see  Mr.  Denison  and  make  an  effort  to  have 
him  brought  there.    That  is  the  history  of  my  connexion  with  the  matter. 

By  Mr.  Le  Blond  : 
Question.  Did  he  deposit  the  money  ? 

Answer.  He  did  not,  that  I  ever  knew  of.  His  correspondents  here  said  they 
had  received  a  letter  from  him,  but  they  did  not  exactly  understand  that  they 
were  to  deposit  the  money.  I  had  several  interviews  with  them  upon  the  sub- 
ject, and  they  kept  putting  me  off,  and  said  they  should  hear  from  him  in  a  day 
or  two  ;  that  they  had  written  him,  and  they  were  not  authorized  to  do  any- 
thing until  they  got  positive  orders.  They  intimated  that  they  had  received 
something,  but  it  was  not  definite  enough  ;  and  again  they  said  that  they 
had  not  received  anything.  They  acted  very  strangely  about  it ;  and,  finally, 
after  experimenting  ten  days,  and  I  don't  know  but  two  weeks,  with  this  French 
house,  I  made  up  my  mind  that  they  would  not  do  anything;  and  unless  we 
had  some  guarantee  that  this  man  would  give  us  the  information  we  wanted, 
the  government  would  make  no  efforts  to  bring  him  on  here.  So  I  gave  it  up. 
The  next  thing  I  heard  after  this,  Mr.  Hanscom  called  upon  me  and  told  me 
that  there  had  been  a  complaint  made  at  Washington  by  somebody,  charging 
complicity  between  us  to  get  money  out  of  a  prisoner  in  Fort  Warren.  He 
seemed  to  feel  quite  indignant  about  it,  and  said  :  "  To-morrow  I  am  going  to 
make  a  report,  as  I  have  got  to  explain  the  thing;"  and  the  next  day  he  told 
me  that  he  had  reported  substantially  in  accordance  with  the  facts  as  I  have 
stated  them  now,  as  far  as  he  knew.  He  stated  the  several  conversations  he 
had  with  me  about  this  plan  of  smuggling,  and  he  went  on  to  explain  all  he 
knew  about  it,  (of  course  he  did  not  know  what  I  said  to  Mr.  Gairy  ;)  signed 
his  statement,  folded  it,  and  put  it  in  an  envelope,  and  directed  it  to  the  War 
Department.  Mr.  Barney  came  in  to  look  at  it ;  read  it  over  ;  took  his  pen  and 
wrote  on  the  bottom  :  "  This  has  been  done  without  my  knowledge  or  consent. 
Hiram  Barney."  And  it  was  then  sealed  up  and  sent  on  to  Washington.  I 
heard  no  more  about  it  until  six  or  eight  weeks  after,  the  19th  of  February, 
when  I  had  a  note  from  Mr.  Bolles  requesting  me  to  come  to  his  office.  In  this 
note  Mr.  Bolles  very  pleasantly  stated  that  he  wanted  to  ask  me  something 
about  the  Gairy  matter.  I  went  up  there  at  his  request,  and  went  into  his  pri- 
vate room.  I  told  him  that  I  would  givo  him  all  the  information  I  had  about  it 
in  short  order  ;  and  I  told  him,  as  near  as  I  can  recollect,  in  substance  what  I 
have  now  told  you.  I  alluded  to  having  received  this  letter  from  Montreal,  and 
he  asked  me  if  I  had  that  letter  with  me.  I  told  him,  "Yes;"  and  he  asked 
me  if  I  would  allow  him  to  see  it.  I  handed  it  to  him,  and  he  said,  44  I  want 
to  keep  this  until  I  see  you  again.  I  am  not  very  well  now,  and  I  want  to 
see  you  again."    He  put  the  letter  in  his  pocket,  and  I  came  out. 


182  NEW   YORK  CUSTOM  HOUSE. 

By  the  chairman : 

Question.  What  were  the  contents  of  that  letter,  as  near  as  you  can  recollect? 

Answer.  The  letter  was  simply  a  friendly  letter  from  Lyman  Mills,  dated  at 
Montreal,  (the  date  I  have  forgotten,)  and  it  read  something  like  this  :  "  Why 
don't  the  government  of  the  United  States  look  out  for  their  revenues  ?  To 
my  knowledge,  some  $600,000  worth  of  French  merinos  have  been  smuggled 
across  the  frontier  within  the  last  week  or  ten  days.  But  I  suppose,"  he  says, 
"  that  the  government  is  so  absorbed  in  its  vast  military  operations  that  it  has 
not  time  to  look  after  smugglers."  This  note  must  have  been  received  the  latter 
part  of  July  or  the  fore  part  of  August,  about  the  time  I  went  to  Boston.  I  do 
not  remember  the  time  exactly. 

Answer.  Did  you  ever  show  this  letter,  or  a  copy  of  it,  or  communicate  its 
contents  to  any  person  connected  with  the  revenue  department  here  or  at  Wash- 
ington ? 

Answer.  I  showed  it  to  Mr.  Denison  and  Mr.  Hanscom.  I  do  not  think  I 
showed  it  to  anybody  else  that  had  any  connexion  with  the  government.  I  did 
intend  to  show  it  to  Mr.  Barney,  but  I  had  become  discouraged  with  regard  to 
saying  anything  to  him.  I  showed  it,  as  soon  as  I  received  it,  to  Mr.  Denison 
and  Mr.  Hanscom,  and  I  wanted  them  to  let  Captain  Perkins  go  to  Canada  in 
regard  to  this  matter,  as  he  knew  everybody  in  Montreal,  having  lived  there, 
and  being  a  native  of  a  British  province,  St.  John's.  His  father  was  a  large 
shipping  merchant  there,  and  he  himself  was  pretty  well  known.  I  talked  with 
Mr.  Hanscom  two  or  three  times  about  it,  and  I  think  he  told  me  that  he  had 
some  conversation  with  Mr.  Barney  and  Mr.  Harrington  in  relation  to  it,  but 
did  not  get  any  encouragement  from  him.  I  did  not  hear  anything  more  about 
this  matter  until  I  was  arrested  three  weeks  ago  to-day.  I  do  not  know  the 
grounds  upon  which  I  was  arrested,  except  by  hearsay. 

Question.  Do  you  know  whether  anything  was  ever  done  by  the  revenue  de- 
partment with  reference  to  the  contents  of  that  letter  or  the  information  con- 
tained in  it  ? 

Answer.  My  impression  is  that  there  was  nothing  done  in  regard  to  it.  There 
was  an  effort  on  the  part  of  Messrs.  Denison  and  Hanscom  to  do  something,  but 
they  did  not  meet  with  any  encouragement.  I  wish  to  correct  myself.  I  stated 
that  I  did  not  show  this  letter  or  communicate  its  contents  to  any  officer  of  the 
government  but  Mr.  Denison  and  Mr.  Hanscom.  I  did  communicate  the  con- 
tents of  that  letter  to  Mr.  Jordan.  I  showed  the  letter  to  him.  The  last  thing 
Mr.  Jordan  said  when  he  went  away  was,  "  You  will  have  authority  to  act  in 
these  matters  as  quick  as  I  get  to  Washington.  I  consider  it  a  very  important 
matter,  and  I  will  see  that  something  is  done  that  will  be  an  inducement  for  you 
to  follow  this  thing  up."  Mr.  Denison  afterwards  told  me  that  Mr.  Jordan  was 
overruled  by  somebody. 

Question.  By  whom  ? 

Answer.  I  don't  know;  he  did  not  tell  me,  but  I  supposed  it  was  Mr.  Barney. 
I  suppose  they  would  not  do  anything  here  in  relation  to  the  revenue  de- 
partment without  consulting  the  Secretary  of  the  Treasury,  and  Mr.  Barney 
would  not  allow  me  to  do  anything  if  he  could  help  it. 

Question.  Why  ! 

Answer.  I  don't  know  the  reason  why,  only  it  has  appeared  so  from  the  start 
whenever  I  have  made  an  effort  to  do  anything.. 

By  Mr.  Le  Blond : 
Question.  Who  is  Major  Bolles  I 

Answer.  I  understand  that  he  is  judge  advocate  on  General  Dix's  staff,  a 
lawyer  by  profession,  and  a  late  partner  and  intimate  personal  friend  of  H.  B. 
Stanton.    He  is  a  brother-in-law  of  General  Dix,  as  I  am  informed. 

Question.  Was  there  any  understanding  between  you  and  Mr.  Gairy,  either 


NEW   YORK   CUSTOM  HOUSE. 


183 


directly  or  indirectly,  that  you  were  to  get  him  out  of  Fort  Warren  for  a  money 
consideration  alone  ? 

Answer.  There  was  not  one  solitary  word  upon  that  subject  between  us. 

Question.  Are  we  to  understand,  then,  that  the  only  consideration  for  his  re- 
lease was  to  be  based  upon  his  disclosure  of  facts  which  would  lead  to  the  dis- 
covery of  this  smuggling  business? 

Answer.  That  was  all  the  inducement  there  was. 

Question.  You  say  you  do  not  know  the  ground  of  the  charges  upon  which 
you  were  arrested  ? 

Answer.  No,  sir,  except  by  hearsay.  A  friend  of  mine  says  that  General  Dix 
says  that  my  getting  into  Fort  Warren  was  all  right  because  1  had  permission  to 
go  there,  but  I  had  no  business  to  talk  with  a  prisoner  about  money ;  and  1  hear, 
in  addition  to  that,  that  some  of  them  had  accused  me  of  claiming  to  be  an  official 
of  the  government.  1  distinctly  told  Mr.  Gairy  and  the  collector  and  deputy  that 
I  had  no  connexion  with  the  government  now,  and  had  not  for  over  twelve  months, 
although  I  had  in  my  pocket  a  commission  as  deputy  marshal  under  Marshal  Mur- 
ray which  had  never  been  revoked  I  told  them  that  I  did  not  consider  myself 
in  the  service  of  the  government  since  I  had  resigned  my  place  under  Mr.  Chase, 
and  I  had  no  connexion  with  it  pro  or  con.  I  told  the  correspondents  of  Mr. 
Gairy  in  Cedar  street  so,  and  I  told  the  custom-house  people  in  Boston  the  same. 

Question.  Where  have  you  been  since  your  arrest? 

Answer.  At  the  police  headquarters,  in  one  of  the  dark  rooms  there. 

♦ 

Testimony  of  Henry  A.  Car  gill. 

New  York,  March  22,  1864. 

Henry  A.  Cargill  sworn  and  examined. 

By  the  chairman : 
Question.  Do  you  reside  in  New  Yrork? 
Answer.  Yres,  sir. 

Question.  Have  you  been  in  the  employ  of  the  custom-house? 

Answer.  Yes,  sir. 

Question.  In  what  capacity? 

Answer.  As  deputy  collector. 

Question.  Of  what  bureau? 

Answer.  I  was  in  the  seizure  bureau  probably  a  little  more  than  a  year. 
Question.  When  did  your  connexion  with  the  custom-house  cease? 
Answer.  In  August,  1861. 
Question.  Did  you  resign  ? 

Answer.  Yres,  sir;  I  sent  in  my  resignation  soon  after  Mr.  Barney  was  ap- 
pointed; he  asked  me  to  hold  on,  and  I  staid  therefor  some  three  or  four  months. 

Question.  A  note  has  been  sent  to  the  committee  stating,  as  I  read  it,  that 
you  knew  something  about  the  furnishing  of  books  and  blanks  to  C.  C.  Walden, 
reported  to  be  a  confederate  agent? 

Answer.  I  have  heard  of  it,  but  I  do  not  know  anything  personally  of  it  my- 
self; Mr.  Albert  Phillips  is  the  one  that  told  me;  I  heard  him  speak  about  it, 
stating  that  Mr.  Lobdell  had  done  so. 

Question.  Who  is  Mr.  Lobdell  I 

Answer.  He  is  in  the  custom-house  as  superintendent  of  warehouses. 
Question.  And  it  is  stated  that  lie  furnished  them? 

Answer.  Y'es,  sir;  Mr.  Walden  wrote  on  from  Savannah,  as  I  understand. 
The  matter  has  been  brought  before  Mr.  Barney;  all  that  I  ever  knew  about  it 
was  from  Mr.  Phillips,  who  told  me  that  Mr.  Barney  had  heard  about  it  and  had 
questioned  him  in  regard  to  it.  There  is  another  man  who  knows  more  about  it 
to-day  than  Mr.  Phillips.    He  used  to  be  a  porter  there. 


184 


NEW   YORK  CUSTOM  HOUSE. 


Question.  Did  you  know  while  you  were  in  the  custom-house  of  any  abuses, 
improprieties,  or  frauds  that  this  committee  should  look  after  ? 

Answer.  I  don't  know  that  there  was  any  fraud.  I  simply  know  that  the 
entry  clerks  were  in  the  habit  of  taking  extra  perquisites,  because  they  worked 
after  hours.  That  they  considered  a  legitimate  business.  We  had  not  entry 
clerks  enough  to  do  the  business,  and  they  would  take  papers  home  with  them 
at  night.  [  have  no  doubt  that  many  of  them  would  make  1,500  to  2,000 
dollars  a  year  by  it. 

By  Mr.  Le  Blond  : 
Question.  Is  that  system  still  carried  on  ? 
Answer.  I  have  not  a  doubt  of  it;  I  have  no  knowledge  of  it. 

Testimony  of  Hamilton  Pride. 

March  1,  1864. 

A.  Hamilton  Pride  sworn  and  examined. 

By  the  chairman : 

Question.  What  is  your  occupation  ? 
Answer.  I  am  in  the  express  business. 

Question.  Have  you  any  connexion  with  the  New  York  custom-house  ? 
Answer.  No,  sir. 

Question.  Do  you  know  anything  about  its  workings? 
Answer.  Very  little. 

Question.  Do  you  know  anything  of  seizures  under  the  direction  of  the  naval 
officer  by  Messrs.  Isaacs,  Graham  and  others? 
Answer.  I  know  of  none  whatever. 

Question.-  Do  you  know  anything  about  the  seizure  of  papers  by  them? 

Answer.  My  father,  who  was  a  custom-house  broker,  died  about  two  years 
ago ;  he  had  quite  a  large  business.  When  he  died  I  associated  with  myself 
Mr.  Centan,  to  carry  on  the  business,  so  as  to  retain  the  business  if  possible,  I 
retaining  my  situation  at  the  Express  Co.  For  a  time  the  business  went  on  very 
well.  One  day  the  officers  went  into  the  office  and,  there  they  seized  a  lot  of 
papers,  as  they  said,  and  Mr.  Pride's  books.  That  is  all  I  know  about  it.  Mr. 
Centan  was  arrested,  and  discharged  on  the  third  or  fourth  day  after. 

Question.  How  long  since  was  this  ? 

Answer.  That  was  about  a  month  after  we  went  into  business  together;  it  was 
nearly  two  years  ago ;  it  was  only  about  a  month  after  father  died. 

Question.  Do  you  know  anything  about  what  these  papers  Avere  ? 

Answer.  I  understood  that  they  were  invoices  taken  from  the  custom-house 
as  references — that's  all;  instead  of  one  invoice  being  given,  the  clink  had  given 
the  whole  bundle  ;  I  know  no  more  about  it  than  that. 

Question.  The  committee  were  informed  that  within  ten  days  you  had  said  to 
a  gentleman  that  you  had  information  you  could  give,  and  were  inclined  to  give 
it  to  the  ommittee,  on  the  subject  of  their  investigations  ? 

Answer.  I  have  never  had  any  such  conversation  with  anybody;  Mr.  Isaacs 
and  Mr.  Denison  are  the  only  men  I  have  conversed  with  upon  this  matter.  1 
met  Mr.  Isaacs  at  dinner,  and  Mr.  Isaacs  was  talking  about  Mr.  Centan  ;  I  said 
it  was  a  shame  that  Mr.  Centan  had  not  a  situation  as  promised  by  the  custom- 
house authorities  on  his  giving  the  information  he  had.  I  went  to  see  Mr.  Den- 
ison to  get  the  books  of  Mr.  Pride,  because  I  wished  them  as  references  in  my 
express  business  ;  I  told  him  that  any  time  he  wanted  the  books  I  would  give 
him  bonds  that  they  would  be  produced,  or  he  might  put  them  where  I  could 
get  at  them;  but  he  refused  to  let  me  have  them  ;  that  is  all  the  conversation  I 
have  had  with  any  one  in  the  cu&tom-house. 


NEW   YORK   CUSTOM  HOUSE. 


185 


Question.  How  long  were  you  and  Mr.  Centan  in  this  brokerage  business? 
Answer.  Not  over  a  month  ;  in  the  mean  time  I  was  not  in  the  office  once  a 
week. 

Question.  Did  you  have  ariythingto  do  yourself  with  the  brokerage  business  1 
Answer.  It  was  all  left  to  Mr.  Centan. 
Question.  You  were  simply  a  business  partner  I 

Answer.  He  had  the  use  of  my  name  to  get  customers  t<>  build  up  the  busi- 
ness if  he  could  ;  unfortunately  it  turned  out  the  other  way  ;  I  had  nothing  to 
do  with  the  routine  of  the  business ;  I  knew  nothing  about  passing  entries. 

By  Mr.  Rollins  : 

Question.  Was  anything  said  in  this  conversation  with  Mr.  [saacs  about  your 
appearing  before  the  committee  ? 

Answer.  Yes,  sir ;  I  said  I  supposed  the  committee  would,  if  they  came  to 
New  York,  bring  up  Centan,  and  if  they  did,  they  would  bring  me  up  also  from 
my  being  associated  with  him  ;  I  told  him  that  I  knew  nothing  about  it. 

By  the  chairman  : 

Question.  Did  you  know  anything  about  custom-house  operations  while  you 
and  he  were  together  ? 
Answer.  No,  sir. 

Question.  What  broke  up  the  business  ? 

Answer.  This  arrest. 

Question.  Why  was  he  arrested  ? 

Answer.  That  I  don't  know  ;  only  they  say  that  he  had  been  doing  something 
which  he  should  not  have  done. 

Question.  Were  these  custom-house  papers  brought  in  there  and  deposited  in 
the  desk  or  cupboard  without  any  knowledge  on  your  part  ? 

Answer.  Yes,  sir  ;  I  don't  know  anything  about  that ;  when  my  father  died 
1  took  what  few  effects  he  had  there  from  the  office,  and  I  knew  of  nothing  there 
except  his  desks  and  chairs. 

Question.  Had  Mr.  Centan  any  experience  in  this  business  before? 

Answer.  He  had  been  a  custom-house  broker  for  several  years  ;  1  had  heard 
him  spoken  of  very  highly  at  different  times;  I  knew  he  was  not  doing  a  great 
deal,  and  I  knew  my  father  had  a  good  class  of  customers,  and  I  associated  my- 
self with  him  to  retain  the  business  if  possible. 

Question.  You  have  no  personal  knowledge  of  what  this  seizure  of  books  and 
papers  in  your  room  was  made  for? 

Answer.  I  don't  know  why  they  seized  those  books.  I  have  looked  them 
over  in  the  custom-house  from  time  to  time  when  I  have  had  inquiries  to  make 
preparatory  to  sending  west  by  express,  and  I  could  not  tell  whether  there  was 
anything  wrong  in  them,  or  whether  there  was  not ;  I  suppose  an  entry  made  to- 
day shows  for  itself.  These  are  nothing  but  copies  of  entries  that  passed  through 
the  custom-house  ;  I  don't  know  why  they  kept  the  books  there  ;  I  have  asked 
them  of  Mr.  Denison. 

By  Mr.  Le  Blond  : 
Question.  Has  he  got  them  yet  .; 

Answer.  Yes,  sir ;  Mr.  Pride  used  to  make  out  his  entries  and  keep  in  his 
books  fac  similes  of  them,  headings  and  all.  His  entries  would  be  deposited  in 
the  custom-house,  and  his  customers  would  come  down  to  know  how  far  the  en- 
tries were  advanced,  and  he  would  turn  to  the  entry  book,  and  it  would  show 
for  itself. 

By  Mr.  Rollins  : 

Question.  Were  any  of  these  entries  and  books  returned  to  you  .; 
Answer.  No,  sir  ;  Mr.  Denison  has  them  in  charge  now. 


18f> 


NEW  YORK  CUSTOM  HOUSE. 


Question.  Did  your  firm  of  Pride  &  Cental]  pay  anything  on  account  of  the 
abstraction  of  these  papers  from  the  custom-house?  Were  you  punished  in  any 
way  by  being  required  to  pay  money  ? 

Answer.  We  never  abstracted  any  papers. 

Question.  The  papers  were  found  in  your  possession  ? 

Answer.  Mr.  Centan  says  he  does  not  know  how  they  came  there.  I  did  not 
know  anything  about  it  until  I  was  asked  by  the  custom-house  authorities 
about  it. 

Question.  How  did  you  settle  the  matter  with  the  party  seizing  them  i 
Answer.  I  had  nothing  to  do  with  it. 
Question.  How  did  your  firm  ? 

Answer.  Mr.  Denison  and  Mr.  C  en  tan  settled  it  between  them. 
Question.  How  1 
Answer.  I  don't  know. 

By  the  chairman  : 

Question.  Has  not  Mr.  Oentan  ever  told  you  how  it  was  settled  ? 

Answer.  I  know  that  Mr.  Ceutan  underwent  an  examination  before  the  cus- 
tom-house authorities,  but  I  don't  know  anything  at  all  about  what  was  said  or 
done. 

Question.  You  don't  know  whether  he  ever  paid  anything  at  all  ? 
Answer.  No,  sir. 

Question.  Do  you  know  whether  he  paid  anything  to  obtain  those  papers,  or 
any  part  of  them ,  from  the  custom-house  ? 

Answer.  Mr.  Centan  never  got  those  papers;  the  papers  were  not  returned 
from  the  custom-house. 

Question.  I  understand  that  a  portion  of  the  papers  which  were  seized  in  that 
office  were  papers  originally  on  file  in  the  custom-house — invoices  and  the  like. 
The  object  of  my  inquiry  is  to  know  whether  Mr.  Centan,  or  any  other  person, 
to  your  knowledge,  paid  anything  to  obtain  these  papers  at  the  custom-house 
originally. 

Answer.  I  don't  know  anything  at  all  about  that.  I  understood  at  the  time 

that  that  was  the  reason  or  the  basis  upon  which  this  arrest  was  made — that 

these  papers  belonged  to  the  custom-house. 

Question.  Do  you  know  how  they  came  from  the  custom-house  authorities  1 
Answer.  No.  sir;  I  don't  know  anything  at  all  connected  with  the  business. 

When  Mr.  Centan  was  arrested  I  was  very  much  mortified,  and,  of  course, 

ceased  all  connexion  with  him. 

By  Mr.  Le  Blond : 

Question.  In  your  conversation  with  .Mr.  Isaacs  you  said  to  him  that  when 
this  committee  came  on,  you  supposed  that  they  would  have.  Mr.  Centan  before 
them,  in  consequence  of  the  information  that  he  had  communicated  to  the  cus- 
tom-house authorities :  Avhat  was  that  information  that  he  gave  to  them  ? 

Answer.  I  did  not  make  such  a  remark  as  that.  I  said  that  the  committee 
would  probably  bring  me  up  before  them  on  account  of  my  connexion  with  Mr. 
Centan. 

Testimony  of  Henry  B.  Stanton. 

New  York,  March  21,  1SG4. 

Henry  B.  Stanton  sworn  and  examined. 
By  the  chairman  : 

Question.  When  did  your  connexion  with  the  custom-house  commence  ? 
Answer.  It  commenced  the  very  last  of  August,  1861. 
Question.  What  was  the  position  occupied  there  by  you  ? 


NEW  YORK  CUSTOM  HOUSE. 


187 


Answer.  I  was  deputy  collector — and  perhaps  here  I  had  better  explain  pre- 
cisely the  position  I  held.  When  I  first  entered  the  custom-house  the  position 
to  which  I  was  assigned  was  known  as  the  law  department.  There  was  special- 
ly assigned  to  me  then  the  consideration  of  many  legal  questions  which  arose 
in  the  custom-house.  At  a  later  date,  from  the  period  of  my  entrance,  I  had 
nominally  the  charge  of  the  seizure  department.  At  a  later  date  still  I  had  what 
might  be  called  specific  charge  of  lhat  department,  so  far  as  the  collector's  office 
was  concerned.  I  ceased  to  have  charge  of  the  seizure  department,  properly 
speaking,  in  May,  1S63.  Throughout  the  entire  period  in  which  I  was  in  the 
custom-house,  from,  say,  the  last  of  August,  1S61.  until  the  last  of  October, 
1S63,  I  had  a  good  deal  to  do  with  the  receiving  of  bonds  from  parties.  Those 
bonds,  first  and  last,  if  classified,  would  number  six  or  eight  different  classes. 
Pretty  much  all  of  them  arose  out  of  what  I  may  call  the  exigencies  of  the  war, 
either  under  special  legislation  of  Congress,  or  under  instructions  from  the 
Treasury  Department.  Besides  all  this,  there  was  constantly  referred  to  me  a 
good  deal  of  miscellaneous  business  by  the  collector. 

Question.  Perhaps  you  had  better  go  on,  Mr.  Stanton,  and  tell  us  about  the 
working  of  the  bond  bureau. 

Answer.  I  have  already  indicated  that,  among  other  duties  which  I  was 
charged  with  the  performance  of,  there  was  a  good  deal  to  do  in  respect  to  the 
taking  of  bonds,  and,  if  I  understand  this  inquiry,  and  the  testimony  which  has 
gone  in  heretofore,  (and  all  that  I  know  about  it  are  some  natural  inferences 
from  facts  which  I  do  know,)  I  suppose  you  desire  me  to  make  a  statement  in 
regard  to  the  taking  of  bonds  on  shipments  of  goods  where  there  might  be  dan- 
ger of  their  ultimately  reaching  the  rebels.  I  will,  therefore,  with  tin-  permis- 
sion of  the  committee,  give  a  sketch  of  that  system,  which  I  think  I  understand, 
and  its  rise  in  the  New  York  custom-house :  The  general  system  of  taking 
bonds  in  the  Xew  York  custom-house  upon  shipments  of  merchandise  to  ports 
where  there  might  be  danger,  more  or  less,  of  their  being  subsequently  used  in 
some  way  to  aid  the  rebellion,  commenced  near  the  close  of  May,  1862.  These 
bonds  were  exacted  under  written  instructions  from  the  Secretary  of  the 
Treasury,  dated  May  23,  1862.    The  instructions  were  in  these  words,  viz  : 

"  In  all  cases  where,  in  your  judgment,  there  is  ground  for  apprehension  that 
any  goods,  wares,  or  merchandise  .-hipped  at  your  port  will  be  used  in  any  way 
for  the  aid  of  the  insurgents  or  the  insurrection,  you  will  require  substantial 
security  to  be  given  that  such  goods,  wares,  or  merchandise  shall  not  be  trans- 
ported to  any  place  under  insurrectionary  control,  and  shall  not  in  any  way  be 
used  to  give  aid  or  comfort  to  such  insurgents." 

These  instructions,  as  I  have  said,  were  dated  May  23,  1862,  and  were 
addressed  by  the  Secretary  of  the  Treasury  to  the  collector  of  the  port  of  Xew 
York.  No  copy  of  the  law,  if  there  were  an}r,  under  which  the  instructions 
were  issued,  was,  so  far  as  I  know,  furnished  with  the  instructions  ;  and  I  am 
confident  that  no  copy  of  the  law  under  which  they  were  supposed  to  have  been 
issued  was,  within  my  knowledge,  received  at  the  custom-house  until  about  the 
last  of  August,  1S62.  That  the  Secretary  of  the  Treasury  recognized  these 
specific  instructions  as  the  authority  for  the  collector  to  require  what  he  called 
substantial  security  is  proved  by  this  fact :  that  as  late  as  the  summer  of  1863, 
in  a  correspondence  with  the  Secretary  of  State,  and  which  ultimately  reached 
the  Xew  York  custom-house,  the  collector  was  instructed  to  insert  an  amend- 
ment in  those  instructions,  and  there  never  was  an  intimation  that  the  bonds 
were  to  be  required  under  any  other  authority  than  those  written  instructions. 
The  business  of  taking  this  class  of  bonds  was  assigned  to  me.  It  somewhat 
naturally  fell  in  that  direction  from  the  fact,  as  will  be  shown  in  my  answer  to 
the  first  question,  that  other  bonds  had  been  taken  under  my  supervision.  At 
the  outset,  that  is  in  May,  1S62,  a  draft  of  a  bond  was  drawn  by  me  and  sub- 
mitted to  the  collector.  I  believe  he  suggested  some  alterations,  and  after  con- 
sultation and  revision  a  form  was  adopted,  which  was  approved  by  him.  and  a 


188 


NEW   YORK   CUSTOM  HOUSE. 


copy  was  soon  after  forwarded  to  the  Secretary  of  the  Treasury.  It  was  either 
forw  arded  very  soon  after  or  within  a  short  period.  At  this  time,  and  for  a  few 
months  afterwards,  the  office  was  not  aware — certainly  I  was  not — of  the  pro- 
visions of  the  law  under  which  the  bonds  were  to  be  required,  and  it  was 
deemed  proper  by  the  collector  on  consultation,  as  well  as  by  myself,  that  as  a 
general  rule  the  several  shippers  of  merchandise  should,  in  their  respective, 
cases,  be  the  principal  obligors  in  these  bonds.  It  was  regarded  that  there  was 
nothing  in  the  instructions  that  led  to  the  belief  that  any  other  course  was  to 
be  pursued,  while  they  very  clearly  implied  that  the  shippers  themselves  were 
in  their  own  cases  individually  to  give  what  is  called  the  "  substantial  security." 
It  will  be  noted  that  no  specific  ports  are  mentioned  in  the  treasury  instruc- 
tions, nor  is  the  word  "bond''  used  in  them,  nor  the  word  "surety."  The 
words  are,  "you  will  take  substantial  security." 

Immediately  on  receiving  these  instructions,  the  collector  began  to  require 
bonds  on  all  shipments  of  merchandise  to  the  two  ports  of  Nassau  and  Mata- 
moras  I  say  all,  though  there  may  have  been  an  occasional  exception.  It 
will  not  be  improper  for  me  to  say  here,  that  I  always  deemed  this  not  a  strict 
compliance  with  either  the  letter  or  the  spirit  of  the  instructions.  The  instruc- 
tions only  authorize  security  to  be  given  where  there  was  ground  for  apprehen- 
sion that  the  merchandise  would  be  used  for  the  aid  of  the  insurgents.  In 
many  of  the  shipments  to  the  two  ports  of  Nassau  and  Matamoras,  during  the 
period  I  remained  in  the  custom-house,  I  think  there  was  really  no  good  grounds 
for  this  apprehension.  On  the  contrary,  in  many  of  the  cases  I  am  sure  parties 
were  dealing  with  legitimate  customers  in  the  most  perfectly  legitimate  manner. 
But  to  distinguish  between  the  cases,  where  there  was  and  where  there  was  not 
ground  for  this  apprehension,  sometimes  required  a  good  deal  of  inquiry,  involv- 
ing time  and  labor,  and  with  the  clerical  force  at  its  disposal,  the  department  of 
the  custom-house  whose  duty  it  was  to  decide  these  cases,  could  not  perform  it 
without  causing  vexatious  delays  to  shippers,  and  therefore  it  was  determined, 
as  a  general  rule,  to  require  bonds  on  all  shipments  to  the  two  ports  named ; 
and  this  course,  I  believe,  was  continued  down  to  the  time  I  ceased  to  officiate 
in  the  custom-house,  which  was  October  28,  1863  ;  and  I  believe  it  has  been 
continued  ever  since,  though  upon  that  point  I  speak,  of  course,  with  doubt. 
I  will  add  here,  that  bonds  from  the  outset  of  the  period  I  have  mentioned,  that 
is,  May,  1S62,  were  now  and  then  required  on  shipments  or  portions  of  ship- 
ments to  Havana,  and  now  and  then  to  some  other  port;  and  some  time  in  the 
summer  of  1863  (the  period  I  cannot  exactly  fix)  Bermuda  was  placed  upon 
the  same  category  as  Nassau  and  Matamoras,  and  bonds  on  all  shipments  to 
that  port  were  required. 

That  this  matter  may  be  fully  understood,  I  ought  to  say  that  from  the  out- 
set, in  May,  1862,  down  to  October,  1863,  I  never  had  anything  to  do  with  the 
question  of  deciding  upon  what  shipments  bonds  should  be  required.  The 
matter  belonged  exclusively  to  another  department,  called  the  "  clearance  depart- 
ment." The  decision  of  that  question,  in  all  its  bearings  and  relations,  was 
decided  by  that  department  and  not  by  myself,  and  this  was  clone  preliminary 
to  any  action  in  my  department.  The  mode  of  doing  the  business  may  be  sub- 
stantially stated  thus  :  shippers  of  merchandise,  in  the  regular  course  of  pro- 
cedure, presented  their  manifests  or  invoices  of  merchandise  to  the  officer  in 
charge  of  the  clearance  department.  He  examined  them,  and — subject  to  the 
collector,  of  course — passed  upon  the  question  whether  they  should  be  allowed 
to  clear  the  goods  at  all,  and  also  whether  they  should  be  allowed  to  do  this 
upon  giving  bonds  or  without  giving  bonds;  whether  they  should  give  bonds 
on  the  whole  merchandise  embraced  in  the  manifest  or  on  only  a  part  of  it  ;  and 
if  so,  upon  what  part,  It  was  for  the  clearance  department,  and  not  for  me,  to 
decide  whether  such  and  such  merchandise  should  be  shipped  on  such  and  such 
vessels  to  such  and  such  ports  by  such  and  such  persons,  and  upon  what  terms, 


i 


NEW  YORK  CUSTOM  BOUSE. 


189' 


if  any,  so  far  as  the  giving  of  bonds  was  concerned.  My  department  had 
nothing  whatever  to  do  with  these  subjects.  After  the  clearance  department 
had  passed  upon  these  questions,  then,  if  the  shippers  were  allowed  to  ship 
their  merchandise  in  whole  or  in  part,  the  head  of  the  clearance  department, 
if  he  decided  that  bonds  were  to  be  required  for  the  whole  or  a  portion  of  the 
shipments,  noted  that  fact  on  the  manifests,  usually  in  these  words  :  "  bond 
required,"  appending  to  the  words  his  initials.  The  manifests  thus  indorsed 
were  then  brought  to  my  department,  not  for  its  revision  on  the  questions 
already  passed  upon  by  the  other  department,  but  simply  to  take  what  is  called 
in  the  instructions  the  "substantial  security."  Then,  and  then  only,  the 
authority  and  the  responsibility  of  my  department  commenced.  Its  duties  lay 
within  a  very  narrow  range. 

Under  the  instructions,  the  duty  of  my  department  was  merely  to  require 
a  "substantial  security;"  nevertheless,  from  the  very  constant  appeals  to  the 
collector  and  from  the  constant  efforts  made  to  modify  the  instructions  in  some 
way,  matters  did  occasionally  come  up  there  in  respect  to  some  relaxation  of 
the  rules  in  regard  to  the  nature  of  the  security.  1  wish  it  borne  in  mind  that 
the  taking  of  these  bonds  was  only  one  branch  of  the  business  devolved  upon 
my  department,  and  at  the  outset  and  for  a  considerable  period,  it  was  the  smallest 
branch.  At  the  time  this  was  devolved  upon  my  department,  (I  now  speak  of 
May,  186:2.)  I  then,  and  for  a  few  months  thereafter,  had,  under  the  supervision 
of  the  collector,  the  general  charge  of  the  seizure  bureau,  so  far  as  it  related  to 
the  collector's  department.  I  also  had  to  conduct  a  good  deal  of  correspondence 
with  the  Treasury  Department,  and  also  with  the  department  of  the  United 
States  district  attorney  and  the  United  States  marshal's  department,  in  this 
district.  My  clerical  force  was  very  small  In  another  investigation  before 
the  Solicitor  (Mr.  Jordan)  it  has  been  stated,  by  one  competent  to  judge,  that, 
in  proportion  to  the  amount  of  business  done,  my  clerical  force  was  much  smaller 
than  that  of  any  other  department  in  the  custom-house.  I  neither  had  time, 
(I  speak  of  myself  personally.)  nor  Avas  it  my  duty,  to  look  over  the  manifests 
in  these  cases  further  than  to  see  what  the  amounts  were,  so  as  to  fix  the 
amounts  in  the  bonds,  and  this  usually  required  but  a  very  few  moments, 
scarcely  a  moment,  because  the  sum  totals  were  almost  invariably  noted  on  the 
manifests.  The  bonds  were  printed  in  blank,  and  the  tilling  up  was  very  little, 
and  it  was  almost  invariably  done  by  my  clerks  in  the  outer  room  of  my  office, 
and  seldom  by  me,  and  I  think  never  by  me  except  some  person  accidentally 
happened  to  come  into  my  room  instead  of  going  to  a  clerk's  desk,  or  when 
there  was  a  very  extraordinary  pressure  of  business,  so  that  I  took  hold  myself 
and  performed  mere  clerical  labor. 

As  a  general  rule,  when  the  bonds  had  been  filled  up  in  this  outer  room, 
signed  by  the  parties,  and  everything  completed  in  regard  to  them,  then  they 
came  to  my  room  for  the  purpose  of  acknowledging  the  bonds,  and  for  the  pur- 
pose of  justifying  in  regard  to  the  sufficiency  of  the  sureties ;  and  here  it  may 
be  pertinent  for  me  to  explain,  that  if  the  goods  shipped  in  any  case  were  of  a 
different  character,  or  were  greater  in  quantity  or  value  than  what  was  stated 
in  the  manifest,  I  had  no  means  whatever  of  detecting  it.  I  was  limited,  and 
necessarily  so,  to  the  facts  stated  in  the  manifest.  For  example  :  if  in  a  given 
case  the  manifest  should  set  forth  five  hundred  barrels  of  flour  when  there 
were  a  thousand  actually  shipped,  or  it  stated  that  the  goods  shipped  were 
groceries,  and  worth  $5,000,  when  they  were  in  fact  contraband  of  war,  and 
were  worth  $20,000,  I  had  no  means  of  detecting  it,  (it  was  not  within  the 
purview  of  my  duties,)  nor  had  I  any  possible  way  of  doing  it.  And  here  I 
ought  to  add,  as  I  have  made  that  statement,  that  I  know  of  no  such  case,  and 
uever  had  any  reason  to  suspect  any  such  case. 

Question.  You  state  that  you  had  no  means  of  knowing;  is  there  no  check  ; 
is  it  not  somebody's  duty  to  know  that  fact ;  if  so,  whose  was  it? 


190 


NEW  YOKK  CUSTOM  HOUSE. 


Answer.  Primarily  it  was  the  duty  of  what  is  called  the  clearance  depart- 
ment. They  were  to  examine  the  manifests;  they  keep  the  run  of  all  the  ship- 
ments. Then,  next,  it  was  the  duty  (of  course,  subject  to  the  collector  and 
naval  officer)  of  the  surveyor's  department  to  see  whether  the  goods  shipped 
corresponded  with  the  manifest.  Allow  me  to  restate  this.  A  gentleman 
appears  at  the  clearance  bureau  to  ship  goods,  and  he  produces  a  manifest.  It 
was  the  duty  of  the  clearance  bureau  to  see  that  the  goods  in  the  manifest  were 
proper  to  be  shipped  to  Nassau  or  Matamoras,  for  instance. 

Question.  What  are  the  implements  or  means  that  the  department  or  the. 
government  furnish  to  enable  that  man  to  know  that  the  manifests  and  the 
goods  correspond  ? 

Answer.  He  had — I  speak  now  pretty  broadly — none  at  all.  He  could  look 
over  the  manifest  to  see  if  the  goods  there  which  were  about  to  be  shipped  were 
proper  goods  to  go,  and  he  had  the  facilities,  and  it  was  his  duty  to  compare 
the  goods  set  forth  in  the  manifest  with  the  Treasury  instructions  upon  this 
point.  The  Treasury  instructions  had  set  forth  very  largely  a  series  of  articles 
which  were  regarded  as  contraband  of  war,  and  not  to  be  shipped.  I  have  the 
utmost  confidence,  I  wish  to  say,  in  the  integrity  with  which  the  head  of  that 
bureau  (Mr.  Embree)  discharged  his  duties. 

Question.  Will  you  tell  us  how  can  he  compare  it  with  the  instructions  of 
the  Treasury  Department  ? 

Answer.  Then,  after  the  bond  is  given,  which  was  a  secondary  affair,  (for, 
mind  you,  they  could  not  begin  to  clear  their  goods  without  the  check  of  the 
clearance  bureau,)  it  had  to  pass,  after  he  had  checked  the  manifest,  and  the 
bond  had  been  given  to  the  naval  department,  who  held  a  peremptory  check 
over  the  collector's  office.  Whatever  the  collector  might  pass  by  his  deputies 
was  subject  to  revision,  and  could  never  pass  without  the  permission  of  the 
naval  officer. 

Now,  1  will  reach  your  point,  I  think.  All  these  respective  shippers'  mani- 
fests were  subsequently  copied  upon  a  manifest  of  the  entire  vessel.  Then, 
the  duty  of  ascertaining  whether  the  goods  set  forth  in  the  manifest  of  the 
vessel  as  a  whole,  or  (if  they  had  opportunity)  of  the  respective  individual 
shippers'  manifests,  devolved  upon  what  I  might  call  the  out-door  force,  and  that 
was,  I  believe,  under  the  general  supervision  of  the  surveyor. 

1  have  stated  this  course  of  business,  so  far  as  my  department  is  concerned, 
for  the  purpose  of  showing  that  it  was  not  within  my  power  to  detect  contra- 
band shipments  of  merchandise  on  these  manifests,  if  any,  nor  detect  the  false 
representations  of  the  shipper  in  regard  to  quality  and  quantity,  if  any;  nor 
had  my  department  the  facilities  for  ascertaining  what  persons  or  what  vessels, 
if  any,  were  liable  to  the  suspicion  of  being  engaged,  directly  or  indirectly,  in 
illicit  trade,  or  in  trying  to  defraud  the  government  by  false  manifests.  And 
here  I  repeat  again,  that  I  know  no  such  case,  nor  in  the  course  of  business  did 
I  ever  suspect  any.  I  had  to  rely  upon  the  facts  as  they  appeared  in  the  man- 
ifest. That  I  should  have  looked  more  carefully  into  this  matter,  not  exactly 
as  an  official  duty,  but  for  prudential  reasons,  is  undoubtedly  true,  provided  I 
had  had  more  clerical  force  at  my  disposal.  During  nearly  the  whole  time  1  was 
in  the  custom-house,  and  especially  in  the  last  nine  months,  my  force  was 
hardly  sufficient  to  get  through  with  the  regular  business  assigned  to  it,  and 
very  many  days  it  was  next  to  impossible  to  do  it;  and  this  fact  was  more  than 
once  brought  home  to  the  notice  of  my  official  superiors.  The  form  of  the 
bonds  taken,  the  usual  exactions  in  regard  to  what  was  treated  as  substantial 
security,  the  terms  on  which  bonds  were  subsequently  cancelled,  and  all  matters 
of  this  sort,  were  well  understood  by  the  collector,  naval  officer,  and  the  Treas- 
ury Department. 

From  May,  1862,  onward  to  October,  1863,  during  which  I  acted  upon  this 
subject,  large  numbers  of  these  bonds  were  from  time  to  time  examined  by  the 


NEW   YORK   CUSTOM  BOUSE 


191 


collector,  and  transcripts  of  them  and  facts  in  regard  to  them  were  sent  to  the 
Treasury  Department.  They  were  sometimes  inspected  by  the  naval  officer, 
and  the  whole  subject  was  a  matter  of  frequent  correspondence  between  the 
custom-house  and  the  Treasury  Department.  All  the  forms  used,  all  the  general 
matters  relating  to  the  number  or  sufficiency  of  the  obligors  and  the  usual  con- 
ditions of  cancellation,  were  directly  and  impliedly  sanctioned  by  the  collector 
and  other  principal  officers  in  the  custom-house  and  by  the  Treasury  Depart- 
ment. If  you  think  it  necessary,  I  could  cite  a  great  many  facts  in  illustration 
of  this  general  proposition.  The  difficulty  of  enforcing  these  instructions  was 
very  great,  and  required  the  utmost  vigilance  and  the  utmost  sternness.  The 
object  of  the  custom  house  authorities  being  to  prohibit  trade  with  the  rebels, 
the  conditions  of  the  bonds  were  made  as  stringent  as  the  letter  and  the  spirit 
of  the  Treasury  instructions  would  allow.  Complaints  by  shippers  were  being 
made  on  the  subject  to  the  collector,  the  Secretary  of  State,  the  Secretary  of 
the  Treasury,  and  the  foreign  consuls  of  this  port,  more  especially  the  British, 
and  to  the  British  minister,  and  much  correspondence,  and  I  may  say,  a  con- 
tinued stream  of  correspondence,  was  kept  up  upon  this  subject.  My  depart- 
ment was. constantly  under  the  censure  of  shippers  and  their  counsel  because 
of  the  stringency  of  the  rules  adopted  in  regard  to  these  bonds.  Lawyers  were 
even  present  when  bonds  were  being  exacted,  who  insisted  that  the  whole  sys- 
tem was  contrary  to  international  law  and  treaties  with  foreign  powers.  Ship- 
pers were  incessantly  insisting  that  their  particular  trade  was  legitimate,  and 
did  not  come  within  the  letter  or  spirit  of  the  instructions  of  the  Treasury  De- 
partment, and  an  incessant  effort  was  made  to  induce  the  belief  that  such  and 
such  things  were  exceptions  to  the  class  of  cases  mentioned  in  the  Treasury  in- 
structions. Parties  were  constantly  arguing  to  induce  the  office  to  reduce  the 
number  or  the  pecuniary  ability  of  the  sureties  in  particular  cases,  even  pre- 
senting proof,  or  offering  to  present  proof,  that  the  shipments  then  under 
sideration  did  not  fall  within  the  exactions  of  these  instructions.  They  also 
repeatedly  assured  the  office  that  no  such  bonds  were  exacted  at  other  ports, 
and  therefore  it  was  oppressive  in  New  York  officials  to  exact  them.  Many  of 
the  shippers  were  British  subjects,  and  a  large  share  of  the  vessels,  and 
especially  for  the  last  year  I  was  in  the  custom-house,  employed  in  this  kind  of 
trade  of  which  I  am  speaking  carried  the  British  flag.  Much  of  the  trade  was 
with  British  ports.  A  good  deal  of  the  merchandise  shipped  from  this  port  was 
in  bond  under  the  warehouse  system,  it  never  having  been  entered  at  New  York 
by  these  British  owners.  A  correspondence  between  the  British  minister  at 
Washington  and  our  Secretary  of  State  was  known  to  be  constantly  going  on 
in  respect  to  all  the  subjects  involved.  Copies  of  the  communications  of  British 
shippers,  and  despatches  of  the  British  minister,  and  letters  of  the  British  con- 
sul, and  protests  and  remonstrances  from  the  officials  and  merchants  of  these 
British  ports,  filled  with  complaints  of  the  stringent  and  onerous  exactions  of 
the  custom-house  in  the  matter  of  requiring  bonds,  and  also  the  refusal  to  cancel 
them  upon  certain  proofs,  which  they  claimed  to  be  sufficient,  were  from  tim  •  to 
time  forwarded  to  the  collector  by  the  Treasury  Department,  with  instructions 
to  report  thereon,  and  to  make  necessary  explanations.  In  truth,  I  may  say  that 
my  department  fell  that  it  was  constantly  under  censure  because  of  the  strin- 
gent manner  in  which  it  endeavored  to  execute  the  instructions  of  the  Treasury 
Department  upon  those  subjects.  It  may  not  be  amiss  to  say  in  regard  to  myself 
personally,  that  wtile  I  endeavored  to  do  my  duty  in  the  premises,  I  also  tried 
to  perform  it  so  as  not  to  be  too  oppressive  to  shippers,  and  give  any  needless 
cause  for  objections  by  complaining  parties;  and  in  the  critical  condition  of  our 
foreign  relations  I  was  specially  solicitous  so  to  act  as  not  to  embarrass  our  in- 
ternational relations,  nor  provoke  collisions  with  foreign  powers;  and  it  Mould 
be  v.0o  much  to  say  that  these  considerations  did  not  sometimes  operate  in  some 
degree  to  modify  the  stringency  of  the  rules  under  which  this  business  was 


192 


NEW    YORK   CUSTOM  HOUSE 


done.  In  pursuing  this  course,  I  cannot  be  mistaken  in  saying  that  my  con- 
duct was  in  accordance  with  the  wishes  of  my  official  superiors. 

The  entire  system  of  taking  these  bonds  was  uew.  There  was  no  precedent 
for  it  in  the  custom-house.  The  only  bureau  which  furnished  anything  ap- 
proaching to  precedents  was  the  warehouse  department,  and  in  that  department 
the  custom  was  to  take  the  same  sureties  upon  large  numbers  of  bonds,  nor 
were  the  obligors  usually  required  by  the  warehouse  department  to  justify  as 
to  their  pecuniary  responsibility.  In  the  matter  of  accepting  the  same  sureties 
upon  successive  bonds  of  the  class  of  which  I  have  particularly  spoken,  my 
department  followed  the  warehouse  precedent  only  to  a  limited  extent,  and  my 
department  always  required  obligors  to  justify,  either  in  the  form  of  an  afldavit 
reduced  to  writing,  signed  by  them  and  attached  to  the  bond,  or  by  an  oral  ex- 
amination under  oath.  As  to  taking  the  same  sureties  on  successive  bonds,  this 
was  only  done  in  cases  where  the  office  had  no  reason  for  suspecting  that  the 
importations  were  intended  to  reach  tin;  rebels,  or  where  the  shippers  were  in 
the  habit,  after  a  reasonable  time,  of  producing  a  consul's  certificate  from  the 
port  of  destination,  or  where  they  furnished  some  good  reason  for  not  producing 
such  certificate.  It  was  the  custom,  after  a  limited  number  of  shipments  had 
been  made  by  the  same  parties  furnishing  the  same  sureties,  if  their  bonds  had 
not  been  cancelled,  to  require  them  upon  subsequent  shipments  to  furnish  other 
and  additional  sureties.  I  have  already  stated  that  parties  on  these  bonds  were 
required  to  justify  under  oath  as  one  of  the  modes — that  is,  by  an  affidavit  for- 
mally reduced  to  writing,  or  an  examination  orally  under  oath.  Doubtless  the 
aggregate  amount  of  these  bonds  was  in  some  instances  greater  than  the  amount 
the  sureties  were  worth.  The  question  naturally  arises,  Why  these  men  were 
received  as  sureties?  For  example,  a  person  who  was  worth  $25,000  might 
appear  on  four  bonds,  the  aggregate  of  which  was  $100,000.  I  know  no  such 
case  ;  I  only  assume  that  it  might  be.  The  real  mode  of  doing  business  in  this 
regard,  which  is  a  very  important  one,  was  this  :  When,  tor  instance,  a  party  pre- 
sented himself  as  surety  upon  the  fourth  bond,  amounting,  say,  to  825,000,  if 
he  tlien  knew  that  the  merchandise '  covered  by  the  three  previous  bonds  had 
been  or  would  be  so  disposed  of  as  not  to  violate  their  conditions,  and  therefore 
his  liability  therefor  was  really  at  an  end,  he  could  make  oath  that  he  w  as 
worth  $25,000  over  and  above  all  debts  and  liabilities.  Sureties  often  made 
this  explanation  under  oath.  The  whole  matter  was  explained  to  them.  They 
knew  the  facts,  or  claimed  to  know  them  all.  I  knew  nothing  about  the  facts.  I 
often  cautioned  them  upon  this  point,  and  they  swore  understanding^;  and  not 
knowing  anything  of  the  course  of  trade,  or  any  facts  tending  to  arouse  sus- 
picion respecting  the  statements  of  the  parties,  I  did  not  feel  at  liberty  to  hesi- 
tate taking  them  as  sureties.  I  may  here  add,  as  I  have  barely  touched  upon 
it,  that  in  regard  to  all  these  parties,  throughout  the  entire  time  I  was  in  charge 
of  this  business,  I  knew  nothing  in  regard  to  the  trade  of  any  of  these  parties 
except  what  appeared  upon  their  manifests.  I  was  doing  business  with  scores, 
and  I  may  say  hundreds  of  them,  sometimes  fifty  and  more  a  day,  and  usually 
when  much  pressed  for  time. 

I  will  state  further  in  regard  to  sureties  upon  these  bonds.  The  treasury 
instructions  said  nothing  about  sureties,  but  spoke  only  of  "substantial  surety,"1 
and  this  was  held  to  embrace  all  the  obligors  ;  and  if  principals  and  sureties, 
or  even,  as  in  some  cases,  the  principal  himself,  appeared  to  be  worth  the 
amount  of  the  bonds,  this  was  deemed  a  compliance  with  the  instructions. 
There  were  a  very  few  bonds  taken  under  exceptional  circumstances  where  I 
think  no  surety  w  as  exacted.  It  is  within  my  recollection  now  that  the  firm  of 
Spofford  &:  Tileston  shipped  coal  to  New  Orleans  for  the  use  of  their  own 
steamers.  There  was  not  a  shadow  of  doubt  about  the  entire  good  faith  of  the 
transaction.  The  firm  of  Spofford  &  Tileston,  and  the  individual  members, 
Mr.  Spofford  and  Mr.  Tileston,  were  know  n  to  be  very  wealthy.    Their  wealth 


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193 


was  reputed  to  be,  and  unquestionably  was,  to  say  the  least,  hundreds  of  thou- 
sands of  dollars.  I  now  recollect  that  Mr.  Tileston  himself,  in  one  of  these 
cases  on  a  bond — whose  amount  I  cannot  specify,  but  say  $10,000 — given  on 
a  shipment  of  coal  of  the  firm  for  the  use  of  their  steamers,  to  be  landed  at 
New  Orleans,  did  himself  individually  sign  the  bond  ;  and  yet  the  instructions 
did  not  require  sureties,  strictly  so  speaking.  No  one  will  question  that  Thomas 
Tileston  was,  in  the  language  of  these  instructions,  most  substantial  security. 
I  suppose  Ik;  was  worth  half  a  million  of  dollars.  There  were  a  few  other  cases 
of  this  sort.  But,  as  I  have  said,  the  construction  of  the  office  was,  that  we 
could  take  into  view  the  responsibility  of  both  principals  and  sureties  in  arriv- 
ing at  the  fact  whether  we  had  taken  "substantial  security."  This  mode  of 
doing  the  business  was  known,  I  believe,  or  must  have  been  known,  to  my  offi- 
cial superiors. 

It  was  also  the  case  in  regard  to  manifests,  that  the  clearance  bureau  some- 
times only  exacted  a  bond  in  regard  to  a  portion  of  the  shipment,  indicating 
upon  the  manifest  what  portion.  Then  the  bond,  of  course,  was  only  taken 
for  that  portion,  because  it  was  not  deemed  in  regard  to  the  rest  of  the  manifest 
that  it  came  within  the  scope  of  the  Treasury  instructions.  It  is  also  true  that 
in  an  occasional  case,  though  very  rarely,  where  there  was  really  no  ground 
for  apprehension,  we  took  a  bond,  after  consultation  and  advisement,  upon  a  less 
sum  than  the  amount  stated  in  the  manifest,  and  perhaps  where  we  might  doubt 
whether  the  obligors  were  worth  the  whole  amount  of  the  manifest.  This,  I 
repeat,  was  in  cases  where,  from  our  knowledge  of  the  parties  or  the  character 
of  the  goods  or  their  destination,  we  felt  that  there  was  no  ground  for  appre- 
hension ;  and  I  took  the  bond  in  such  cases  lest  our  refusal  to  take  it  should 
be  cited  against  us  as  a  precedent  in  cases  where  we  were  not  so  clear.  I  re- 
member that  these  exceptional  cases  were  very  few  indeed,  and  they  were  cases, 
in  my  judgment,  where  there  was  not  the  slightest  doubt  about  the  safety  of 
thus  doing  the  business.  I  am  not  aware  of  any  case,  which  was  thought  to 
come  within  the  purview  of  the  instructions,  in  which  a  bond  was  taken  by  me 
where  the  whole  amount  to  which  all  the  parties  justified  was  not  ample,  and 
where  there  was  any  ground  for  apprehension  that  the  goods  might  be  improp- 
erly disposed  of.  Certainly  no  such  bond  was  knowingly  taken  by  me.  The 
parties  used  to  swear,  and  individually  as  a  general  rule,  that  they  were  worth 
the  amount  stated  in  the  bond  over  and  above  all  debts  and  liabilities ;  and 
when  a  party  thus  swore,  and  I  knew  no  facts  to  the  contrary,  and  had  no  sus- 
picion that  they  were  not  swearing  truly,  of  course  I  did  not  feel  at  liberty  to 
question  their  statements. 

There  was  another  habit  pursued,  which  was  in  regard  to  parties  who  were 
doing  a  regular  business  with  such  and  such  ports.  I  always  swore  them  as  to 
their  sufficiency,  but  did  not  always  do  it  in  the  form  of  an  affidavit  reduced  to 
writing.  That  sometimes  arose  from  the  hurry  of  business  where  it  was  im- 
possible to  do  it.  It  more  often  arose  from  the  fact  that  I  knew  that  the  par- 
ties only  a  little  while  before  had  by  an  affidavit  sworn  to  their  property,  and 
which  was  often  far  beyond  the  amount  contained  in  the  boud ;  and  it  arose, 
too,  partly  from  this  fact  that  I  often  found  an  oral  examination  under  oath 
quite  as  satisfactory  to  my  mind  as  a  more  formal  affidavit,  because  it  gave  me 
an  opportunity  where  a  party  swore,  for  instance,  that  he  was  worth  $^0,000, 
to  inquire  into  the  facts — what  his  property  consisted  in,  and  matters  of  like 
character. 

Question  You  stated  that  your  instructions  from  the  Treasury  Department 
were  of  a  late  date,  and  that  a  copy  of  the  law  upon  which  this  matter  was  pred- 
icated was  not  furnished  you  until  September:  was  there  any  variation  in  the 
Secretary's  instructions  betwixt  the  first  and  the  copy  of  the  law  that  you  re 
ceived,  that  you  recollect  of"? 

Answer.  I  do  not  recollect  of  any,  and  I  am  very  confident  that  no  such  in- 
H.  Rep.  Com.  Ill  13 


194 


NEW  YORK  CUSTOM  HOUSE. 


Btructions  ever  came ;  and  from  the  manner  in  which  business  was  done,  I  am 
pretty  confident  that  no  such  varied  instructions  were  received. 

Question.  Do  you  recollect  whether  there  was  any  change  required  in  the 
form  of  the  bond  required  of  shippers  betwixt  May  and  September? 

Answer.  There  were  changes  in  the  form  of  the  bonds  after  those  instructions 
were  received.  I  am  not  able  to  say  now,  without  an  examination  further,  that 
there  were  changes  between  May  and  September.  The  object  of  those  changes, 
whenever  made,  was,  while  keeping  within  the  letter  and  spirit  of  the  instruc- 
tions, to  make  the  bonds  more  stringent.  Some  of  these  additions  were  sug- 
gested by  the  collector  himself,  and  subsequently  some  of  these  provisions  were 
modified  because  we  had  doubts  whether  they  were  authorized — whether  we 
were  not  pressing  some  of  these  conditions  in  the  bonds  beyond  what  could  be 
sustained  by  international  law  or  Treasury  instructions.  There  were  several 
alterations  made,  1  will  state  here,  in  these  bonds,  and  always,  I  believe,  going 
to  make  them  more  stringent.  Some  faults  were  found  with  them,  and  after  a 
good  deal  of  annoyance  and  a  great  deal  of  correspondence  by  other  parties 
with  the  Secretary  of  the  Treasury  and  the  Secretary  of  State,  and  after  the 
Secretary  of  the  Treasury  last  summer  had  amended  the  instructions  of  May, 
1862,  the  office,  in  order  to  avoid  all  questions  of  difficulty,  copied  into  the 
bond,  as  it  was  then  made,  the  amended  instructions  verbatim.  1  would  state 
that  the  bonds  at  the  outset,  or  very  near  the  outset,  required  the  parties  to 
land  the  goods  at  the  port  of  destination,  and  enter  them  for  consumption  at 
that  port,  and  I  think  under  some  modification,  and  that,  I  kuow,  was  sug- 
gested by  the  collector  himself,  that  they  should  be  entered  at  the  port  of  des- 
tination, and  be  devoted  to  domestic  use  at  that  port  or  country ;  and  after  great 
consideration  I  think  we  all  arrived  at  the  conclusion  that  we  had  no  such 
right  under  international  law  and  treaty.  And  here,  if  you  will  allow  me,  I 
may  say  in  this  connexion,  so  much  discussion  arose  among  the  counsel  of  ship- 
pers— and  it  came  to  my  knowledge  that  some  of  the  ablest  counsel  in  the  city 
of  New  York,  as  I  was  informed,  and  I  had  no  reason  to  doubt  it,  had  given 
the  opinion  that,  in  respect  to  the  shipper  from  the  city  of  New  York  to  the 
port  of  Nassau,  for  instance,  that  we  could  not  bind  that  shipper  beyond  the 
landing  of  the  goods  at  Nassau,  and  there,  so  to  speak,  washing  his  hands  of 
them — that  I  think  some  modifications  were  suggested  in  the  bond  with  refer- 
ence to  that  state  of  things.  The  collector  took  that  position,  and  when  the 
question  was  raised  in  regard  to  the  propriety  and  feasibility  of  putting  some  of 
these  bonds  in  suit,  I  examined  the  question,  and  I  confess  that,  with  all  my 
desire  to  be  as  stringent  as  possible,  I  could  not  but  concur  in  the  opinion  that 
the  government  could  not  follow  the  goods  beyond  the  port  of  destination,  so 
far  as  it  respected  the  shipper  from  the  port  of  New  York,  if  at  the  port  of  des- 
tination that  shipper  washed  his  hands  of  the  transaction. 

Question.  Who  prescribed  the  formula  requisite  for  the  cancellation  of  these 
bonds  1 

Answer.  Following  the  analogy  of  the  warehouse  department,  and  which 
was  the  only  precedent  we  had  for  doing  any  of  this  business,  there  was  inserted 
at  the  outset  in  the  bonds  that  the  party  snipping  should,  in  due  time,  produce 
to  the  collector  proof  satisfactory  to  him,  by  "consular  certificate  or  otherwise," 
that  the  goods  had  been  landed  at  the  port  of  destination.  I  cannot  be  mis- 
taken in  saying,  that  at  the  outset  it  was  not  contemplated  that  the  bonds  should 
be  cancelled  at  all,  because,  under  the  Treasury  instructions,  we  were  to  take 
this  substantial  security  that  these  goods  should  not  be  transported  to  any  place 
under  insurrectionary  control,  and  should  not  be  used  in  any  way  to  give  aid 
or  comfort  to  insurgents.  The  ground  I  took  when  the  question  was  raised  was, 
that  that  condition  could  not  be  satisfied  by  a  mere  consular  certificate  stating 
that  the  goods  had  been  landed,  and,  therefore,  that  it  was  not  contemplated, 
strictly  speaking,  that  the  bond  was  to  be  cancelled ;  but  after  this  business  had 


NEW  YORK  CUSTOM  HOUSE. 


195 


gone  on,  say  some  two  or  three  months,  some  shippers  here  produced  to  the 
office  certificates  from  the  American  consul  at  Nassau  to  the  effect  that  the 
goods  had  been  landed  at  Nassau,  and  had  been  duly  entered  at  Nassau,  and 
that,  in  the  opinion  of  the  consul,  they  were  not  to  be  used  in  any  way  to  give 
aid  and  comfort  to  the  rebels.  I  do  not  state  the  terms  of  the  certificate  literally, 
but  substantially.  Parties  then  brought  those  consular  certificates  to  the  office, 
and  desired  that  their  bonds  should  be  cancelled.  They  naturally  did  this  be- 
cause in  the  warehouse  department,  under  the  practice  of  yen  s,  bonds  had  been 
cancelled  on  furnishing  what  was  called  a  landing  certificate.  The  office  refused 
to  cancel  those  bonds  to  Nassau  on  that  consular  certificate.  A  correspondence 
arose  on  the  subject  between  the  custom-house  and  the  Treasury  Department, 
I  should  think  about  the  month  of  August,  1862,  but  precisely  how  the  corre- 
spondence was  initiated  I  do  not  know — that  is,  I  do  not  recollect  whether  these 
parties  had  written  to  the  Secretary,  and  he  Avrote  to  the  custom-house,  and,  in 
the  usual  way,  required  a  report,  or  whether,  at  the  request  of  the  parties,  a 
correspondence  began  at  the  custom-house  directly  with  the  Treasury  Depart- 
ment. At  all  events,  about  the  period  I  have  mentioned,  we  received  instruc- 
tions from  the  Treasury  Department  to  cancel  bonds  on  the  production  of  such 
a  certificate,  and  that  practice  was  followed  thereafter.  1  now  speak  partic- 
ularly of  Nassau.  The  same  general  rule  was  adopted  in  regard  to  shipments 
to  Matamoras,  the  office  being  in  the  habit  of  taking  bonds  to  Matamoras. 
So  that,  strictly  speaking,  the  form  was  not  prescribed  either  here  or  at 
Washington,  but  arose  under  the  circumstances  mentioned.  And  here  I  may 
say  further  upon  this  subject,  the  terms  in  the  bonds  were,  that  parties 
shall  produce  satisfactory  proof  to  the  collector,  by  consular  certificate  or 
otherwise,  that  such  and  such  things  have  been  done.  Cases  arose  where, 
for  good  reasons,  parties  failed  to  get  a  consular  certificate;  sometimes  they 
failed  because  they  did  not  apply  for  one,  and  sometimes  because  they  did  not 
know  that  bonds  would  be  cancelled  on  the  faith  of  such  certificates;  and  there 
were  many  cases  where  parties  had  shipped  goods  to  one  or  other  of  these  ports, 
and  all  the  parties  connected  with  the  transactions,  so  far  as  New  York  was 
concerned,  were  here,  and  not  there,  and  in  those  cases,  or  in  some  of  them,  by 
the  direct  or  implied  instructions  of  the  Treasury  Department,  or  the  sanction 
of  the  office,  parties  resorted  to  that  clause  of  the  bond  which  says  that  this 
proof  may  be  by  "consular  certificate  or  otherwise,"  and  they  produced  the 
proof  here,  satisfactory  in  some  cases,  to  cancel  those  bonds,  and  in  some  other 
cases  they  applied  to  the  Treasury  Department.  The  Treasury  Department 
then  called  upon  us  to  take  proof  from  the  parties,  and  forward  that  proof  to 
Washington,  and,  when  that  was  done,  the  department  at  Washington  author- 
ized the  bonds  to  be  cancelled. 

Question.  Please  indicate  to  the  committee  what  was  the  mode  of  cancelling 
bonds,  by  the  consular  certificate  and  otherwise,  as  adopted  or  practiced  at  the 
custom-house. 

Answer.  First,  in  regard  to  the  consular  certificate,  when  a  certificate  was  re- 
ceived whicli  was  deemed  to  come  within  the  scope  of  the  Treasury  instructions, 
the  certificate  was  attached  to  the  bond,  and,  in  accordance  with  these  instruc- 
tions, a  memorandum  was  made  across  the  face  of  the  bond  or  its  margin  some- 
what in  these  words:  "Cancelled  by  virtue  of  the  annexed  certificate;"  then 
giving  the  date,  and  it  was  then  signed  by  me.  The  Treasury  letter  authoriz- 
ing the  office  to  thus  cancel  bonds  declared  that  we  might  write  the  word  "can- 
celled" across  the  face  of  the  bond.  Now,  in  regard  to  other  proof,  generally, 
I  may  say  that  no  such  proof  was  received,  and  no  resort  was  had  to  that  part 
of  the  bond,  unless  parties  gave  some  good  reason  why  they  had  not  got  a  suf- 
ficient consular  certificate,  or  failed  to  obtain  any  certificate  at  all.  It  was 
sometimes  the  case  that  a  certificate  did  not  seem  to  be  quite  sufficient.  The 
port  of  destination  might  be,  and  often  was,  where  those  defects  arose,  Mata- 


196 


NEW   YORK  CUSTOM  HOUSE. 


mora?,  which  we  all  know  is  very  distant.  In  most  of  these  cases  all  interest 
of  the  parties  in  the  shipment  seemed  to  have  ceased,  and,  as  they  often  said, 
they  had  nobody  at  Mata  moras  to  attend  to  this  business.  The  nature  of  the 
proof  in  cases  of  a  defective  certificate,  or  no  certificate,  was  in  the  form  of  affi- 
davits reduced  to  writing;  and  here  T  may  say  that  sometimes  a  defective  certifi- 
cate was  helped  out  by  affidavits.  These  affidavits  came  from  parties  who 
were  presumed  to  be  acquainted  with  the  transactions,  and  in  all  cases  were,  at 
least  some  of  them,  from  men  whom  we  knew. 

One  reason  for  taking  that  proof,  and  which  in  most  cases  was  deemed  quite 
as  satisfactory  as  a  naked  consular  certificate,  was  this :  In  the  form  of  the  cer- 
tificates from  Nassau,  which  served  somewhat  as  a  model,  it  appeared  that  the 
consul  gave  the  certificate  on  the  faith  of  the  oath  of  the  consignee  or  the  owner 
of  the  goods  at  that  port.  It  stated  distinctly  that  the  party,  whatever  relations 
he  stood  in  to  the  goods,  had  made  affidavit  that  the  goods  were  not  to  be  used 
in  aid  of  the  rebellion.  Hence,  when  we  came  to  take  the  same  sort  of  proof 
here  from  a  corresponding  class  of  parties,  I  have  no  doubt  that  we  took  more 
proof,  from  what  I  had  heard  of  the  mode  of  doing  business  at  the  consulate, 
than  was  taken  there,  and  we  had  more  opportunities  to  be  satisfied  in  regard 
to  the  proof,  and  therefore  we  felt  that  as  the  Treasury  Department  had  directed 
that  a  naked  consular  certificate,  based  on  the  oath  of  a  party  there,  should 
cancel  the  bond,  the  office  very  naturally  felt  that  on  the  faith  of  like  proof 
taken  here,  and  under  its  own  eye,  it  might  do  the  same  thing;  and  when  these 
affidavits  were  taken,  if  they  were  taken  here  at  this  office,  they  were  attached 
to  the  bond,  and  then  the  bond  was  cancelled  by  an  indorsement  thereon.  In 
regard  to  the  proof  which  was  sent  to  Washington,  affidavits  were  forwarded, 
and  the  consular  certificate,  if  it  were  defective,  and  if  there  were  any  at  all, 
was  also  forwarded,  and  either  a  copy  of  the  boud  or  a  statement  of  some  of  its 
binding  clauses.  And  when  we  received  the  instructions  from  Washington  to 
cancel  a  bond,  then  the  indorsement  on  the  bond  was  made  something  like  this : 
"Cancelled  by  instructions  of  the  Secretary  of  the  Treasury,"  or,  as  the  case 
might  be,  "Commissioner  of  Customs" — "see  his  letter  of  such  a  date,"  which 
letter  was  on  file  or  was  recorded. 

In  regard  to  the  kind  of  proof,  from  some  cause  which  I  could  never  quite 
divine,  the  consul  at  Nassau,  after  we  had  been  acting  on  the  faith  of  his  cer- 
tificates for,  say,  six  months,  made  a  change  in  the  form  of  the  certificate.  The 
certificates  were  in  printed  form,  and  he  made  a  change  in  the  printed  form, 
which  the  office  thought  gave  us  less  of  his  personal  assurance  in  regard  to  the 
matter  than  the  form  upon  which  we  had  originally  acted,  and  we  not  being  over 
zealous  to  cancel  bonds,  we  declined  to  cancel  any  upon  that  defective  form.  I 
have  rather  thought  that  it  was  a  mistake  in  the  one  case  or  the  other  of  the 
printer,  which  the  consul  himself  did  not  discover  either  in  the  first  form  or  the 
last.  Nevertheless,  the  office  did  refuse,  and  for  some  time,  to  cancel  these 
bonds  until  parties  had  received  and  exhibited  to  us  large  numbers  of  these 
certificates.  Thereupon  a  correspondence  arose  between  Lord  Lyons,  to  whom 
the  case  had  been  communicated,  and  the  Secretary  of  State.  The  Secretary 
of  State  communicated  that  correspondence,  and  it  was  full  of  complaints  to 
the  Secretary  of  the  Treasury.  It  was  at  a  moment  when  our  relations  with 
England  were  in  a  very  critical  condition,  and  I  confess  that  I  rather  sympathized 
with  Mr.  Seward  at  that  time,  thinking  that  we  had  just  about  as  much  on 
hand,  one  war,  as  we  could  manage.  1  say  I  sympathized  with  his  desire  to 
avoid  all  collision  with  England;  so,  I  think,  did  the  Secretary  of  the  Treasury, 
for  he  wrote  us  a  pretty  short  and  curt  letter,  stating,  that  if  there  were  any 
bonds  of  these  parties  that  remained  uncancelled,  that  we  should  cancel  them 
forthwith,  and  we  felt  that  it  was  rather  an  implied  censure  upon  us  for  being  so 
very  strict.  Acting  upon  the  spirit  of  many  of  the  previous  letters  from  the  Sec- 
retary of  the  Treasury,  we  then  went  on  in  respect  to  many  parties  to  take  proof 
to  help  out  a  slight  defect  in  their  consular  certificate ;  and  our  action,  I  should  say, 


NEW  YORK  CUSTOM  HOUSE. 


197 


was  communicated  to  the  Secretary  somewhat  in  words  like  these,  (I  do  not 
pretend  to  quote  exactly,  but  this  is,  in  substance,  what  I  think  was  communica- 
ted.   Certainly  it  gives  the  mode  in  which  the  business  was  done.) 

"  Acting  upon  the  liberal  spirit  of  the  instructions  from  the  Treasury  De- 
partment, this  office  has  received  proof  from  obligors  to  supply  deficiencies  in 
the  certificates,  and  has  thereupon  cancelled  several  of  the  bonds.  Wishing  to 
relieve  shippers  from  the  embarrassments  resulting  from  the  change,  (that  is, 
defects  in  or  absence  of  certificates  from  Nassau,)  various  kinds  of  proof  have 
been  received  to  which  the  most  liberal  rules  of  construction  have  been  applied. 
The  oaths  of  well-known  and  responsible  shippers,  or  an  inspection  of  their 
books  and  correspondence,  or  a  personal  examination  under  oath  of  dwellers  in 
Nassau,  or  sworn  explanations  as  to  the  nature  or  destination  of  particular  ar- 
ticles, (the  investigation  usually  occupying  but  a  short  period,)  have  been  found 
sufficient.  Other  obligors  are  now  preparing  to  produce  proof  for  a  like  pur- 
pose. This  class  of  shippers  generally  express  themselves  satisfied  with  the 
proposal  of  this  office  thus  to  relieve  their  embarrassments."  And  I  may  add, 
that  in  these  cases  we  always  assumed  to  be  acting  with  parties  who  were  deal- 
ing in  good  faith  with  the  government,  but  the  amount  of  trouble  and  protesta- 
tion was  quite  annoying,  and  the  correspondence  upon  this  subject  was  volumi- 
nous. 

Question.  Do  you  know  of  any  bonds  being  cancelled  in  any  other  modes 
than  you  have  indicated  ? 

Answer.  I  do  not  recollect  of  any.  I  can  say  very  confidently  that  no  bond 
was  cancelled  within  my  knowledge,  except  under  such  circumstances  as  I  have 
mentioned.  I  would  like  to  state  another  thing  right  in  that  connexion.  In 
regard  to  the  business  of  cancellation  of  which  I  have  spoken,  the  general  mode 
of  transacting  that  business  was  known  to  my  official  superiors.  I  very  fre- 
quently had  occasion  to  confer  with  the  collector  upon  these  subjects,  to  receive 
his  instructions  and  carry  them  out  both  in  regard  to  the  particular  cases  upon 
which  I  may  have  been  conferring  with  him,  and  in  regard  to  general  lines  of 
policy  in  the  transaction  of  this  business. 

Question.  Did  this  system  of  requiring  and  cancelling  bonds,  on  the  whole, 
operate  as  a  preventive  of  frauds  upon  the  government  ? 

Answer.  I  think  I  cannot  be  mistaken  in  saying  that  previous  to  the  spring 
and  summer  of  1863,  great  doubts  had  arisen  in  the  minds  of  leading  officials 
in  the  custom-house  as  to  the  efficiency,  if  not  the  validity,  of  this  bond  system. 
In  April  or  May,  1863,  the  brig  Jasper  was  seized  at  this  port  upon  the 
ground  that  her  cargo  was,  as  the  custom-house  alleged,  to  be  used  on  its  arri- 
val at  Matamoras  in  aid  of  the  rebellion.  There  was  no  suspicion  arising  in 
regard  to  the  owners  of  the  vessel  or  the  vessel  itself,  but  the  suspicion  arose 
solely  in  regard  to  the  cargo.  Several  of  the  owners  of  the  cargo  lived  at 
Columbus,  Ohio,  and  testimony  was  taken  before  some  military  tribunal  there 
and  forwarded  to  the  Provost  Marshal  General  here,  which  was  claimed  to 
substantiate  this  suspicion.  That  evidence,  or  the  substance  of  it,  was  communi- 
cated to  the  custom-house  before  the  Jasper  sailed.  The  shippers  of  the  mer- 
chandise had  given  the  usual  bond  that  the  merchandise  should  not  be  used  in 
any  way  in  aid  of  the  rebellion.  Owing  to  the  character  of  the  parties,  and 
their  personal  relations  with  other  parties,  the  case  excited  a  good  deal  of  in- 
terest. The  vessel  and  the  cargo  laid  here  under  seizure  many  weeks,  during 
which  there  was  an  investigation  into  the  facts.  Parties  were  heard,  and 
there  were  many  conferences  upon  the  subject  between  the  custom-house  offi- 
cials during  the  months  of  April  and  May,  and  on  to  about  the  1st  of  June, 
which  brought  up  the  whole  bond  system.  The  collector,  the  naval  officer,  and 
myself,  together  with  others,  took  part  in  several  conferences  on  this  subject. 
The  bond  system  had  then  been  in  use  a  year,  and  no  bond  had  been  put  in 
suit,  and  I  believe  no  steps  had  beeu  taken,  at  least,  no  efficient  steps,  to  put 


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NEW  YORK  CUSTOM  HOUSE. 


any  bond  in  suit.  During  these  conferences  blank  forms  of  the  bonds 
used  were  present  and  were  considered.  So  was  the  subject  of  consular 
certificates  and  the  mode  in  vogue  in  the  office  for  cancelling  bonds.  No  fault 
was  found  either  with  the  forms  of  bonds,  the  mode  of  taking  sureties,  the  mode 
of  cancellation,  or  the  general  manner  in  which  the  business  was  done.  In  the 
course  of  these  conferences  it  was  repeatedly  urged  by  me,  that  if  the  govern- 
ment intended  that  this  bond  system  should  be  anything  more  than  a  mere  for- 
mality, steps  should  be  taken  for  procuring  proof  in  regard  to  the  ultimate  dis- 
posal of  the  merchandise  shipped  from  the  port  of  New  York  to  Matamoras, 
Nassau,  and  other  ports,  in  cases  where  this  class  of  bonds  had  been  taken.  As 
things  stood,  the  office  had  no  proof  at  all  on  these  subjects.  I  thereupon,  after 
much  consultation,  drew  up  a  letter  to  the  Secretary  of  the  Treasury,  which,  if 
sent,  was  to  be  signed  by  the  collector,  explaining  the  circumstances,  and  recom- 
mending that  Treasury  agents  be  sent  to  these  ports  for  the  purpose  of  obtain- 
ing evidence  in  regard  to  past  shipments,  and  to  remain  there  and  watch  subse- 
quent shipments  as  they  might  arrive,  and  to  report  the  facts  to  the  Treasury 
Department.  I  gave  it  as  my  opinion  that,  unless  this  course  was  adopted,  the 
whole  bond  system  would  prove  to  be  utterly  nugatory,  and  would  become  a 
mere  formality.  In  this  view  of  the  case,  as  I  understood  at  the  time,  I  was 
strongly  backed  by  the  naval  officer.  After  some  conferences,  the  collector  de- 
clined to  sign  and  forward  the  letter  to  the  Secretary  of  the  Treasury.  And  I 
think  I  cannot  be  mistaken  in  saying,  that  among  other  reasons  (for  he  assigned 
several)  for  this  declination  was,  that  his  opinion  was,  (or  if  not  his  explicit 
and  well-settled  opinion,  at  least  it  was  the  utterance  of  a  very  great  doubt) 
that  after  merchandise  had  reached  from  this  port  a  port  like  Nassau  or  Mata- 
moras,  and  the  shipper  from  this  port  had  washed  his  hands  of  the  transaction, 
the  government  could  not,  in  respect  to  the  shipper,  follow  him  any  further  in  re- 
gard to  these  goods.  And  I  myself,  upon  reflection,  (though  I  am  not  sure 
whether  I  so  said  to  him,)  arrived  at  the  conclusion  that  the  collector  was  right, 
in  his  point  of  law. 

The  question  then  arose,  and  was  asked  by  some  of  these  conferring  parties, 
and  it  should  be  understood  that  these;  conferences  were  very  numerous,  at  in- 
cidental times  for  some  weeks,  "What  is  the  use  of  taking  these  bonds,  if  we  do 
not  intend  to  do  anything,  and  get  proofs  to  show  that  their  conditions  have 
been  violated  ?"  And  it  was  then  substantially  answered,  and  pretty  generally 
concurred  in,  to  the  effect  that  "  the  requiring  of  these  bonds  may  prevent  some 
shipments  to  these  doubtful  ports."  In  other  words,  it  being  gravely  doubted 
whether  the  bonds  were  not  invalid  in  point  of  law,  so  far  as  they  attempted  to 
control  merchandise  beyond  the  neutral  port  of  destination,  and  inasmuch  as  it 
seemed  to  be  conceded  that  if  no  measures  were  taken  to  obtain  evidence  of  the 
violation  of  the  conditions  of  the  bonds,  then  they  would,  as  bonds,  become  ut 
terly  inefficient  in  effecting  their  apparent  objects  and  intents,  though,  on  account 
of  the  onerous  conditions  and  the  necessities  of  the  shippers  obtaining  sureties 
upon  their  bonds,  their  exaction  might  indirectly  operate  to  prevent  some  ship- 
ments to  such  ports  as  Nassau,  Matamoras,  and  the  like.  I  most  distinctly  re- 
collect saying,  when  it  was  concluded  not  to  send  a  letter  to  the  Secretary  of 
the  Treasury,  and  therefore  not  send  any  Treasury  agents  to  get  proof,  "  that 
the  linchpin  of  this  system  had  gone  out."  From  that  hour  I  regarded  the 
bond  system  as  having  failed  and  broken  down  as  to  any  practical  results,  ex- 
cept the  indirect  consequence  of  preventing,  perhaps,  occasional  shipments,  for 
the  reason  stated,  to  the  ports  named ;  and  I  so  stated  to  the, collector  and  the 
custom-house  officials,  and  I  should  be  very  much  surprised  to  learn  that  they 
did  not  concur  with  me  in  opinion  upon  this  subject.  At  all  events,  such  was 
the  impression  made  upon  my  mind  at  that  time,  that,  though  I  afterwards  tried 
to  sustain  the  system,  I  regarded  myself  as  somewhat  in  the  position  of  enforc- 
ing it  under  false  pretences,  and  trying  to  do  indirectly  what  it  was  found  im- 


NEW  YORK   CUSTOM  HOUSE. 


199 


possible — not  to  say  illegal — to  do  directly.  I  will  not  state,  lor  I  need  not, 
what  the  effect  upon  my  mind  must  have  been  during  the  remaining  months  I 
had  the  superintendence  of  this  business,  of  the  result  of  these  long  conferences 
arising  out  of  the  case  of  the  Jasper. 

Question.  Let  me  call  your  attention  to  the  firm  of  Van  Brunt  &  Slaight,  and 
ask  if  they  were  authorized  to  execute  bonds  by  attorney  ;  and  if  so,  what  was 
the  character  of  the  trade  in  which  they  were  engaged  .; 

Answer.  Van  Brunt  &  Slaight  were  engaged  in  carrying  forage,  and,  perhaps, 
provisions,  to  the  army,  from  New  York  to  Washington.  There  was  a  Treasury 
regulation  which  required  that  all  vessels  going  up  the  Chesapeake  should  give  a 
bond  to  the  effect  that  the  officers  and  crew  of  the  vessels  should  be  loyal  to  the 
United  States.  A  very  large  number  of  this  clans  of  bonds  were  taken.  Van 
Brunt  &;  Slaight,  being  regular  shippers  of  these  supplies  for  the  army,  had 
occasion  to  send  vessels  up  the  Chesapeake  to  Washington.  At  first  they 
were  in  the  habit,  according  to  my  recollection,  of  signing  the  bonds  themselves, 
as  sureties  for  the  captain  of  the  vessel,  whose  name  was  always  on  the  bond  as 
principal.  These  bonds  were  regarded  and  treated  rather  as  formalities,  and 
the  conditions  of  the  bond  terminated  in  each  case  with  each  voyage.  Van 
Brunt  &  Slaight,  being  very  busy,  finally  did  not  come  to  the  customdiouse 
to  sign  their  bonds,  but  authorized  a  clerk  of  theirs  to  sign  for  them,  in  view  of 
the  character  of  the  bonds  being,  as  already  stated,  of  a  very  unimportant 
description,  and  regarded  somewhat  as  a  formality.  I  understand  it  has  been 
stated  that  I  wrote  a  note  to  Van  Brunt  &  Slaight,  requesting  them  to  send  a 
written  authority  for  their  clerk  to  sign  their  name  to  their  bonds  ;  therefore 
they  did  send  such  written  authority.  The  authority  was  explicit,  but  was  not 
drawn  up  with  all  the  usual  formalities  of  a  long  power  of  attorney,  but  I  be- 
lieve it  had  the  essence  of  the  power  most  explicitly  stated.  If  I  said  anything 
in  that  note  that  this  was  a  mere  formality,  (for  I  have  no  recollection  of  writing 
a  note  at  all,)  I  must  have  meant  that  their  giving  this  written  power  to  one 
who  was  notoriously  acting  for  them  was  a  mere  formal  proceeding.  Possibly 
Van  Brunt  &  Slaight  did  send  some  goods  up  the  Chesapeake  on  private  ac- 
count, but  I  believe  they,  traded  nowhere  except  up  the  Chesapeake. 

By  Mr.  Rollins  : 

Question.  Did  this  clerk  of  Van  Brunt  &  Slaight  sign  any  other  bonds,  save 
this  class  that  you  speak  of,  under  that  general  power  ? 

Answer.  He  did  not,  as  I  am  aware  of.  I  knew  him  to  be  the  clerk  of  Van 
Brunt  &  Slaight,  and  the  clerk  specially  assigned  to  do  their  custom-house- 
business  in  the  matter  of  clearing  these  vessels.  I  have  no  recollection,  nor  do 
I  believe,  that  Van  Brunt  &  Slaight  ever  shipped  anything  except  shipments  of 
the  character  mentioned. 

By  the  chairman  : 

Question.  Will  you  tell  the  committee  what  you  know  of  the  alleged  abstrac" 
tion  of  bonds  in  the  New  York  custom-house? 

Answer.  Emphasizing  the  word  know  in  the  question,  and  speaking  strictly 
as  a  witness,  I  know  nothing  on  the  subject.  Of  my  own  knowledge,  speaking 
strictly  as  a  witness,  I  do  not  know  that  any  bond  ever  taken  there  has  been 
abstracted.  I  will  state  further,  in  regard  to  myself,  if  any  bonds  have  been  ab- 
stracted, I  did  not  abstract  them  ;  did  not  know  that  they  were  being  abstracted, 
and  never  suspected  anything  of  the  kind.  In  view  of  the  great  number  of 
bonds  taken  there,  and  the  manner  in  which  the  business  was  inevitably  done, 
a  number  of  bonds,  a  good  many  bonds,  might  be  abstracted  without  my  ever 
knowing  or  suspecting  anything  about  it.  In  respect  to  my  own  personal 
knowledge,  and  speaking  as  a  witness,  as  I  stated  at  the  beginning  of  this  an- 
swer, I  wish  my  answer  upon  that  point  to  be  taken  in  the  broadest  and  most 


200 


NEW   YORK  CUSTOM  HOUSE. 


explicit  sense  in  which  the  terms  can  be  used  ;  and  I  am  further  satisfied  that 
the  official  who  investigated  this  matter  heretofore  has  not  the  shadow  of  a  doubt 
of  the  truth  of  this  statement. 

By  Mr.  Lc  Blond : 

Question.  Do  you  refer  to  the  Solicitor  of  the  Treasury  ? 

Answer.  Yes,  sir ;  I  would  state,  further,  that  I  have  never  exchanged  a  word 
with  him  upon  that  subject  since  his  investigation. 

Question.  Why  are  you  satisfied  that  that  is  his  conclusion  1 

Answer.  Because  two  or  three  parties  who  professed  to  know  in  regard  to 
the  matter  stated  that  I  did  not  know  anything  about  it ;  that  they  never  con- 
ferred with  me  on  the  subject,  but,  on  the  contrary,  took  pains  that  I  should  not 
know  anything  about  it  ;  and  this,  in  substance,  was  sworn  to  before  the  Solici- 
tor, or  put  into  his  hands  in  the  form  of  an  affidavit  and  statement. 

Question.  Has  any  one  informed  you  or  told  you  that  the  Solicitor  had  ex- 
pressed that  opinion  ? 

Answer.  I  think  not  explicitly. 

Question.  Has  any  one  intimated  to  you  that  that  was  his  opinion? 

Answer.  I  cannot  say  that  any  one  has.  I  would  say,  further,  that  I  infer  it 
rather  than  know  it. 

Question.  In  what  sense,  then,  are  Ave  to  understand  the  use  of  the  term  "not 
explicitly  "  in  your  former  answer  ? 

Answer.  Perhaps  1  ought  not  to  have  used  the  word  "explicitly." 

New  York,  March  22,  1SG4. 

11.  B.  Stanton  recalled. 
By  Mr.  Le  Blond : 

Question.  Were  all  this  class  of  bonds  that  have  been  spoken  of — I  do  not 
have  reference  to  the  bonds  taken  in  the  Chesapeake  trade — justified  before  you  1 

Answer.  I  suppose  you  now  speak  of  these  bonds  for  trade  at  ports  like 
Nassau.  ^ 

Mr.  Le  Blond.  Yes,  sir. 

Witness,  (resuming.)  I  think,  within  the  rule  stated  by  me  yesterday,  they 
were.  There  may  be  a  few  exceptional  cases  where  they  did  not  literally 
justify  where  I  knew  the  parties  well,  and  where  they  had  justified,  as  I  stated 
yesterday,  some  little  time  before,  in  sums  much  larger  than  the  particular  bonds 
then  under  consideration.  I  think  those  cases  w^ere  rare,  and  where  I  had  no 
doubt  of  the  capacity  of  the  parties. 

Question.  After  justification  of  the  bonds,  what  did  you  then  do  with  them  ? 

Answer.  Speaking  literally,  as  an  almost  invariable  rule,  I  put  the  bond  into 
a  drawer  in  my  desk  at  my  right  hand.  Sometimes  the  bond  Avas  not  quite  com- 
pleted in  some  respects,  and  it  might  lay  a  little  Avhile  on  my  desk,  but  the  rule 
Avas  to  ahvays  put  the  bond,  for  safety,  immediately  in  this  right-hand  draAver. 
Usually  the  business  of  the  office  was  so  great,  and  especially  the  latter  part  of 
the  day,  that  with  the  force  at  my  disposal  everything,  so  far  as  our  office  Avas 
concerned,  such  as  filling  up  the  acknowledgments,  was  not  ahvays  done  until 
after  business  hours.  There  Avas  a  necessity  for  that,  frequently  because  the 
large  number  of  persons  doing  business  made  it  quite  impossible  to  have 
completed  all  these  things  in  the  day ;  but  supposing  them  to  have  been  all 
completed  and  all  the  bonds  laid  in  my  draAver,  then  the  general  rule  was 
(subject  to  rare  exceptions  Avhich  might  groAv  out  of  the  necessities  of  business) 
to  take  these  bonds  the  next  morning  from  that  draA\rer  into  the  outer  office  and 


NEW  YORK  CUSTOM  HOUSE. 


201 


give  them  to  some  one  of  the  clerks  there,  whose  business  it  was  to  make  a  brief 
abstract  of  them  in  a  book  of  records,  numbering  the  bond,  giving  the  date, 
stating  the  name  of  the  principal  and  sureties,  the  amount,  the  name  of  the 
vessel,  the  place  of  the  destination,  and  leaving  a  blank  on  the  right-hand  side 
of  this  double-page  record  to  note  the  time  of  cancellation,  or  if  it  were  can- 
celled, to  make  some  memorandum  of  it  ;  then  the  bonds  were  folded  and  filed 
on  the  outside  with  the  names  of  the  parties  and  the  number,  and  then  were  put 
away. 

Question.  What  was  your  method  of  administering  oaths  to  parties  who 
came  before  you  to  justify;  what  was  the  particular  form? 

Answer.  In  the  affidavits,  where  the  justification  was.  reduced  to  writing,  I 
cannot  give  the  exact  phraseology  without  I  could  see  one  of  the  affidavits,  but  I 
can  give  it  substantially.  The  party  swore  to  the  fact  that  he  was  worth  so  much 
money  over  and  above  all  debts  and  liabilities,  and  I  think  including  property 
exempt  from  execution,  which  in  a  large  bond  I  did  not  deem  a  very  material 
statement,  because  the  amount  exempt  would  be  small.  If  he  swore  in  respect 
to  real  estate,  it  then  required  him,  as  a  general  rule,  to  state  where  the  real 
estate  was,  and  if  it  were  anywhere  in  the  city  of  New  York  or  Brooklyn. 
It  almost  always  required  him  to  state  the  street  where  it  was  located  and  how 
much  it  was  worth  over  and  above  all  incumbrances ;  then  that  affidavit  was 
sworn  to  by  the  parties,  which  parties  were  sometimes  principals  and  sureties, 
sometimes  only  sureties.  Another  mode  was  adopted,  and  very  generally 
applied  in  bonds  unimportant  in  respect  to  their  character,  or  unimportant  in 
regard  to  amount,  and  which  was  frequently  applied  in  cases  of  important 
bonds,  but  quite  rarely  in  those  cases  unless  these  parties  had  also  at  some 
previous  time  made  oath  and  specific  affidavits;  and  in  these  cases  the  oath 
was  this :  two  or  three  of  the  parties  stand  before  me ;  I  request  them  to  lift 
up  their  hands,  and  I  administer  the  oath  in  these  words :  "  Y"ou  do  each  of  you 
solemnly  swear  that  you  will  answer  truly  all  such  questions  as  may  be  put  to 
you  in  regard  to  the  matter  now  in  hearing:  so  help  you  God."  I  then  ask 
them,  beginning  with  perhaps  the  principal,  "Are  you  worth  the  amount  stated 
in  this  bond  over  and  above  all  debts  and  liabilities  ?"  I  would  then  ask  the 
next  man,  (it  is  quite  probable  that  I  did  not  repeat  these  precise  words,)  "  Do 
you  swear  to  this?"  I  got  so  in  the  habit,  I  ought  to  say,  of  administering  that 
oath,  and  it  ran  off  from  my  tongue  so  quickly  sometimes,  that  parties  some- 
times would  ask  me  to  repeat  it.  And  that  made  me  sometimes  very  cautious; 
and  as  a  general  rule,  I  think,  that  kind  of  justification  in  regard  to  important 
bonds  was  not  usually  adopted  unless  the  parties  had  previously  made  an 
affidavit  at  some  previous  time.  I  do  not  think  the  system  of  affidavits  was 
resorted  to  until  within  about  a  year  of  the  time  I  left  there ;  it  may  have  been 
no  more  than  nine  months.  I  do  not  think  that  affidavits  specifically  reduced 
to  writing  were  taken  until  some  time  in  the  winter  or  fall  of  1862  and  1863.  I 
should  say  that  I  speak  of  these  particular  subjects  without  the  papers  before 
me,  and  therefore  subject  to  errors,  which  1  could  very  readily  correct  if  I  could 
see  the  papers. 

Question.  Then  the  examination  given  to  the  sureties  was  the  same  that 
you  gave  to  the  principal  1 

Answer.  Yes,  sir,  if  I  swore  the  principal  at  all,  which  I  did  not  always 
do.  The  reason  of  the  exception  would  be,  that  I  thought  the  ease  required, 
for  instance,  both  principal  and  sureties  to  meet  the  requisitions  of  the  bond. 

Question.  Where  you  made  an  exception  in  the  examination  of  these  parties, 
it  was  in  cases  of  new  parties  applying,  or  parties  that  were  exceptionable  1 

Answer.  As  a  general  rule,  I  should  say  "  yes  ;"  but  there  were  sometimes 
cases  where  I  took,  for  example,  Mr.  Thomas  Tileston  on  a  bond,  whom  I  know 
to  be  worth  hundreds  of  thousands  of  dollars.    I  doubt  whether  I  put  him  to 


202 


NEW   YORK   CUSTOM  MOUSE. 


the  oath ;  and  I  believe  that  in  the  warehouse  department,  which  afforded  the 
only  precedent  in  the  custom-house  for  us,  they  never  or  very  rarely  requred 
the  parties  to  justify. 

Question.  Do  you  recollect  that  you  did  at  any  time,  in  administering  the 
oath  and  examining  the  surety,  simply  say  to  the  surety  after  administering  the 
usual  oath,  and  after  examination  of  the  principal,  "You  swear,"  and  no  more  ? 

Answer.  I  think  the  fact  would  he  as  I  have  stated  already — that  is,  that  I 
would  administer  the  oath,  put  the  question  to  one  party,  and  then  might  some- 
times turn  to  another  party  and  say,  v  Do  you  swear  V  I  might  put  it  in  that 
phraseology.  Remember  that  there  are  about  five  thousand  bonds,  and  it  is 
quite  beyond  my  recollection  or  powers  of  recollection  to  speak  in  an  absolute 
and  universal  sense  in  regard  to  any  particular  case  which  the  committee  may 
have  in  view,  and  I  should  like  to  be  examined  in  regard  to  that  particular  case, 
to  see  if  I  recollect  anything  about  it.  It  is  undoubtedly  true  that  the  general 
mode  of  administering  oaths  in  the  custom-house  is  pretty  brief  and  summary, 
and  I  am  sure  that  it  was  more  specific  and  elaborate  in  my  department  than 
in  any  other  department  of  the  custom-house;  but  if  there  were  any  laxity  in 
that  regard  on  my  part,  it  might  be  in  following  at  a  respectful  distance  the 
precedents  all  around  me. 

Question.  I  would  ask  you  it  you  are  acquainted  with  the  firm  of  Middle- 
ton  &  Co.;  and  if  so,  for  how  long  a  time  have  you  been  acquainted  with  them  ? 

Answer.  I  know  the  members  of  that  firm,  but  only  in  an  official  way,  as  hav- 
ing done  ofiicial  business  with  them.  The  first  names  of  the  two  brothers 
Middleton  I  could  not  give.  My  acquaintance  with  them  arose  when  they 
came  to  give  the  first  bond  on  that  day ;  and  if  my  recollection  serves  me,  for 
I  am  not  quite  sure  about  that ;  theirs  was  the  first  bond  or  one  of  the  first  ever 
executed  by  a  shipper  to  Bermuda ;  and  I  recollect  going  upon  that  occasion 
to  the  clearance  bureau,  and  asking  the  head  of  that  bureau  about  Middleton  & 
Co.  He  stated  to  me,  that  since  his  acquaintance  in  the  custom-house  they 
had  been  regular  shippers  to  Bermuda,  and  were  men  of  quite  large  property. 
I  think  I  did  this  before  I  took  the  bond. 

Question.  About  what  time  was  this? 

Answer.  I  cannot  say  distinctly,  but  my  impressiou  is,  that  it  was  not  far 
from  the  1st  of  July  last. 

Question.  Who  was  the  surety  offered  by  them  at  that  time  ? 

Answer.  I  cannot  distinctly  recollect,  but  a  Mr.  Conklin,  either  then  or  soon 
after,  became  their  surety,  and  was  several  times  their  surety.  Mr.  Conklin's 
first  name  I  cannot  now  give. 

Question.  Were  you  at  the  time  acquainted  with  Mr.  Conklin's  pecuniary 
circumstances  ? 

Answer.  I  was  not,  for  1  did  not  know  him  until  he  appeared  there.  I  would  say 
here,  that  having  made  these  inquiries  about  Middleton  &  Co.,  I  took  their 
bonds  quite  as  much  on  the  faith  of  their  own  large  pecuniary  responsibility  as 
on  that  of  their  surety — I  should  think  more. 

Question.  State  whether  the  usual  oath  was  administered  to  Middleton  &  Co.; 
to  the  Middleton  who  appeared  as  the  principal,  and  to  Conklin  as  surety,  as  was 
administered  to  parties  generally? 

Answer.  Speaking  generally  in  regard  to  other  bonds,  as  a  whole,  that  oath 
was  administered  in  the  usual  form.  I  think  that  the  same  exceptions  were 
made  in  regard  to  always  administering  it  that  I  have  already  alluded  to, 
mainly  for  the  reason,  because  I  did  not  doubt  the  very  large  pecuniary  re- 
sponsibility of  Middleton  &  Co.,  as  represented  to  me. 

Question.  What  was  the  amount  represented  to  you  that  they  were  worth, 
and  by  whom  ? 

Answer.  As  to  the  amount,  speaking  specifically,  I  have  not  a  distinct  recol- 


NEW   YORK  CUSTOM  HOUSE 


203 


lection  ;  I  can  speak  only  from  my  present  impression  of  what  was  then  the 
fact.  I  should  think  I  was  safe  in  saying,  with  my  present  impression  in  respect 
to  what  I  then  believed  from  the  statements  made  to  me,  that  it  would  be  one 
hundred  or  two  hundred  thousand  dollars,  but  in  this  I  may  be  in  error.  The 
sources  whence  I  got  that  I  cannot  now  distinctly  recollect,  but  they  were  cus- 
tom-house sources  upon  which  I  placed  reliance. 

Question.  You  say  the  bond  of  Middleton  &  Co.  was  about  the  first  of  the 
bonds  taken  to  Bermuda  ? 

Answer.  Yes,  sir ;  my  impression  is,  that  the  IjQnd  of  Middleton  &  Co.  was 
the  first,  but  I  am  not  quite  certain. 

Question.  Do  you  recollect  the  amount  of  that  first  bond  ? 

Answer.  I  do 'not. 

Question.  Have  you  any  recollection  whether  it  was  a  large  or  a  small  bond? 

Answer.  I  cannot  recollect.  When  it  was  resolved  by  the  clearance  depart- 
ment to  begin  to  take  bonds  to  Bermuda,  there  was  a  good  deal  of  pending 
trouble  and  irritation  ;  such  as  I  have  previously  alluded  to  in  regard  to  taking 
such  bonds  anywhere,  and  when  it  was  resolved  to  add  Bermuda  to  the  list,  it 
pretty  largely  increased  this  irritation  and  trouble,  and  there  were  a  good  many 
protests  in  regard  to  it;  and  it  was  then  determined,  on  some  consultation,  that 
at  the  outset  of  the  initiation  of  this  system,  in  respect  to  Bermuda  we  would, 
until  it  got  fairly  under  way,  be  a  little  lenient  in  the  matter  of  taking  bonds, 
lest  we  should  have  so  much  trouble  in  regard  to  it  that  we  might  not  be  able 
to  take  them  at  all.'  Therefore,  I  think  there  was  some  relaxation  of  rigid 
rules  at  the  outset  in  regard  to  the  trade  with  Bermuda.  t 

Question.  You  said  yesterday,  in  your  testimony,  that  there  was  great  inse- 
curity about  your  office.  Now,  what  precautions  did  you  take  with  your  bonds 
when  the  justification  had  been  completed,  in  the  way  of  preventing  these  bonds 
falling  into  the  hands  of  parties  that  should  not  have  them — into  the  hands  of 
obligors — during  your  absence  from  the  office '! 

Answer.  I  would  first  state,  in  reply  to  this  question,  that  I  never  thought  or 
dreamed  that  anybody  who  had  not  a  right  to  have  one  of  these  bonds  would 
ever  undertake  to  get  one,  and  I  looked  upon  the  matter  of  insecurity  growing- 
out  of  the  peculiar  condition  of  my  office,  a  portion  of  the  time,  as  tending  to 
loss  or  mislaying  of  bonds,  rather  than  any  improper  abstraction  of  them.  I  did 
not,  therefore,  take  any  special  precautions  beyond  being  rigidly  careful  in  re- 
spect to  such  business  myself,  and  impressing  that  upon  my  clerks. 

Question.  Did  you  put  them  under  lock  and  key  in  your  drawer  ? 

Answer.  I  suppose  that  you  speak  of  my  own  drawer.  My  impression  is, 
that  generally  I  did  not.  After  they  left  me,  and  were  recorded,  they  were 
put  in  a  case,  which  case  necessarily  stood  open  during  all  business  hours  ;  but 
it  was  directed  to  be  locked  after  business  hours,  and  which  I  think  was  locked 
after  business  hours.  I  could  explain  here,  that  what  I  have  said  in  respect  to 
putting  bonds  in  the  drawer  at  my  right  hand  in  my  desk,  and  then  their  going 
into  a  case  under  lock  and  key,  refers  particularly  to  what  we  call  the  new  cus- 
tom-house— that  is,  the  merchants'  exchange. 

Question.  Were  you  in  the  habit  of  locking  this  drawer  when  you  left  the 
office  after  business  hours  ? 

Answer.  I  really  cannot  say.  I  can  only  say  that  my  belief  is  that  some- 
times I  did  and  sometimes  I  did  not ;  and  one  reason  for  not  doing  this  was  the 
fact  that  sometimes  the  clerks  would  work  a  little  after  business  hours,  and 
would  therefore  wish  access  to  that  drawer  where  the  bonds  were,  but  I  think 
mainly  from  the  fact  that  I  never  suspected  any  wrong  in  regard  to  the  matter. 
During  the  day  messengers  were  always  in  the  office,  and  immediately  on  our 
leaving  it  another  employe  of  the  custom-house  came  in  to  adjust  and  sweep 
the  rooms,  and  then  the  rule  was  to  lock  the  office  and  outer  doors  of  the  office. 


204 


NEW  YORK  CUSTOM  HOUSE. 


In  point  of  fact,  after  business  hours  were  over  no  person  but  an  employe?  of 
the  custom-house  had  any  right  in  those  rooms. 

Question.  1  would  call  your  attention  to  another  subject  while  it  is  in  my 
mind.  I  understand  from  your  testimony  on  yesterday  that  you  acted  as  a 
notary  public  in  taking  these  justifications,  administering  oaths,  &c.  By  what 
rule,  or  by  what  revenue  law  or  custom-house  regulation,  were  you  authorized 
to  act  in  that  capacity  ? 

Answer.  First,  as  to  law  :  I  do  not  know  that  there  was  any  law  authorizing 
it  expressly,  but  I  do  not  kngw  that  there  is  any  law  forbidding  it.  As  to  the 
practice  in  the  custom-house  :  There  were  several — I  cannot  say  how  many — 
notaries  public  who  held  office  in  the  custom-house  and  acted  as  notaries  public 
while  holding  office  in  the  custom-house,  and  I  found  that  practice  in  existence 
when  I  came  there. 

Question.  I  would  ask  you  if  there  is  not  a  rule  governing  in  the  custom- 
house that  prohibits  an  officer  receiving  any  fees  or  perquisites  outside  of  his 
regular  salary  ? 

Answer.  I  do  not  know  of  any  such  rule  in  respect  to  his  receiving,  for 
instance,  fees  as  a  notary  public.  On  the  contrary,  1  believe  the  practice  of  the 
custom-house — and  certainly  it  was  during  the  time  I  was  there,  irrespective  of 
myself — to  be  otherwise 

Question.  I  would  ask  you  if  this  system  is  still  carried  on  of  allowing 
attaches  of  the  custom-house  to  exercise  the  duties  of  notaries  public  ? 

Answer.  I  know  that  it  was  done  after  I  left  there,  for  I  saw  it  done;  how  it 
is  now,  I  don'Lknow. 

Question.  What  fee,  if  any,  was  due  to  the  government  upon  all  these  bonds 
taken  1 

Answer.  As  to  the  bonds  taken  by  me — the  special  bonds,  I  mean,  growing 
out  of  this  recent  special  legislation  of  Congress — my  own  opinion  is,  after  ex- 
amining the  law,  that  there  was  no  fee  due  to  the  government,  and  that  the  gov- 
ernment had  not  the  right  to  exact  it.  I  have  examined  the  law,  though  I 
cannot  now  refer  to  the  statute  which  it  has  been  claimed  authorizes  the  taking 
of  such  a  fee. 

Question.  How  much  1 

Answer.  40  cents.  I  conferred  with  the  assistant  collector  upon  this  subject 
while  I  was  there,  and  I  understood  him  to  concur  with  me  in  my  view  of  the 
case,  and  I  am  satisfied  (though  liable  to  be  mistaken,  as  every  lawyer  is)  that 
the  statute  which  authorizes  the  taking  of  40  cents  on  a  bond  does  not  refer  to 
or  include  any  such  bonds  as  those  of  which  I  am  now  speaking,  and  that 
opinion  I  expressed  again  and  again  while  I  was  officiating. 

Question.  I  would  ask  you  if  the  custom-house  officials  are  in  the  habit  even 
of  taking  that  40  cents  for  bonds  ? 

Answer.  I  understand  the  fact  to  be  this,  (though  I  don't  know,)  that  some 
time  after  I  left  (how  long  I  cannot  tell)  they  began  to  exact  a  fee.  This  led 
me  to  a  re-examination  of  the  law,  and  it  confirmed  the  opinion  I  had  previously 
formed,  which  opinion  I  expressed  to  the  collector. 

Question.  Are  you  acquainted  with  a  man  by  the  name  of  Henry  C.  Smith  ? 
You  spoke  of  him  yesterday.    If  so,  what  is  his  business  ? 

Answer.  I  know  a  Henry  Clay  Smith,  and  that  person  is  what  is  called  a 
custom-house  broker. 

Question.  When  did  you  first  become  acquainted  with  him  ? 

Answer.  I  cannot  recollect.  I  am  very  confident  that  I  saw  him  in  and 
around  the  custom-house  before  I  knew  his  name.  The  number  of  brokers 
doing  business  there  is  very  large.  I  knew  the  countenances  of  many  of  them 
whose  names  I  did  not  know  and  do  not  yet  know. 

Question.  Have  you  had  any  knowledge  of  this  man  Smith  as  being  con- 
nected with  the  Middleton  bonds  ? 


NEW  YORK  CUSTOM  HOUSE. 


205 


Answer.  Of  my  own  personal  knowledge  I  have  none. 

Question.  Had  you  at  anytime  after  the  giving  of  any  of  those  bonds  a  con- 
versation with  this  man  Henry  C.  Smith  ? 

Answer.  Never  in  regard  to  those  bonds.  As  a  custom-house  broker  he  did 
some  business,  I  should  think,  not  a  great  deal,  at  my  desk.  When  you  ask 
for  conversations  with  him  in  respect  to  those  bonds,  you  mean,  of  course,  while 
I  was  an  officer  in  the  custom-house. 

Mr.  Le  Blond.  Yes,  sir.  These  Middleton  bonds,  1  understand,  were  all 
given  at  the  time  you  were  there. 

Witness,  (resuming.)  In  transacting  the  business  of  Middleton  &  Co — the 
regular  official  business — I  have  no  recollection  of  Smith  ever  appearing  before 
me  in  connexion  with  that  business,  even  as  a  regular  broker  doing  business. 
My  decided  impression  would  be  that  he  did  not  even  in  that  capacity. 

Question.  Did  he  appear  before  you  in  any  other  capacity  in  reference  to 
those  Middleton  bonds,  upon  which  Mr.  Conklin  was  surety  ? 

Answer.  Mr.  Smith  never  exchanged  a  word  with  me  upon  the  subject  of 
their  bonds,  nor  wrote  a  note  to  me  upon  the  subject,  and  in  the  broadest  sense 
I  wish  to  say  that  1  never  had  a  communication  with  him,  directly  or  indirectly, 
upon  that  subject. 

Question.  Now  I  want  to  know  this — whether  Mr.  Smith  did  not  at  one  time 
appear  at  your  desk,  leaning  upon  it,  and  talk  with  you  in  reference  to  those 
Middleton  bonds,  one  or  more  of  them? 

Answer.  Never  to  my  recollection. 

Question.  What  conversation  had  he  with  you  in  reference  to  those  bonds,  or 
any  other,  at  your  desk  ? 

Answer.  I  think  he  appeared  as  a  broker  a  few  times,  as  I  have  stated,  for 
other  parties,  but  I  am  sure  he  never  had  any  conferences  with  me  in  regard  to 
their  bonds.  I  will  not  say  but  he  might  have  spoken  to  me  possibly  ;  but  if  he 
did,  the  conversation  must  have  been  very  unimportant  and  so  casual  as  not  to 
produce  any  impression  upon  my  mind ;  but  my  strong  recollection  is  that  he 
never  said  a  word  upon  that  subject  to  me. 

Question.  What  business  could  he  have  had  at  your  desk  as  a  broker,  legiti- 
mately 1 

Answer.  He  assisted  in  clearing  some  of  these  Chesapeake  vessels,  and — as 
I  have  heretofore  explained,  the  main  object  of  these  bonds  being  to  bind  the 
captain  in  respect  to  the  loyalty  of  his  crew — I  think  on  one  or  two  occasions, 
perhaps  more,  he  was  a  surety  on  some  of  these  bonds,  and  he  may  have,  and  I  think 
likely,  has  done  business  with  me  in  other  matters,  but  I  have  no  distinct 
recollection  of  it,  if  at  all.  When  I  was  in  charge  of  what  is  called  the  seizure 
bureau  1  was  in  frequent  official  communication  with  parties  and  with  brokers 
in  respect  to  those  cases,  and  in  doing  some  of  that  business  I  may  possibly 
have  done  some  of  it  with  Mr.  Smith,  but  I  have  no  recollection  of  it. 

Question.  Were  you  in  the  seizure  bureau  at  the  time  these  Middleton  bonds 
were  given  ? 

Answer.  No,  sir. 

Question.  What  power  had  you  in  your  bureau  to  clear  vessels  that  should 
call  Mr.  Smith  to  your  desk  ? 

Answer.  Only  in  respect  to  the  giving  of  these  bonds. 

Question.  Did  not  the  parties  themselves  appear  before  you  and  execute  the 
bonds  ? 

Answer.  Yes,  sir. 

Question.  Then  what  necessity  was  there  for  a  broker  ? 

Answer.  The  broker  almost  invariably  eame  with  his  parties.  I  put  that 
rather  too  strongiy.  Brokers  frequently  came  with  their  parties.  In  regard  to 
what  I  have  said  concerning  Mr.  Smith,  it  now  occurs  to  me  that  he  did  one 
day  speak  to  me  something  in  respect  to  some  cotton  which  we  had  seized,  in 


20G 


NEW  YORK  CUSTOM  HOUSE. 


no  way  relating  to  Middleton  &  Co.  He  professed  to  act  as  the  broker  of  the 
parties.  The  interview  was  momentary,  and  I  stated  in  substance  to  him  that 
the  case  was  settled  in  regard  to  the  seizure  of  the  cotton,  and  that  was  the  end 
of  it. 

Question.  Then  we  are  to  understand  that  lie  was  not  a  frequent  visitor  at 
your  desk  ? 

Answer.  In  comparison  with  others  doing  the  same  business  he  was  engaged 
in,  he  was,  I  should  think,  rather  an  unfrequent  visitor;  though  I  ought  to  say 
that,  doing  business  with  so  many  men  as  I  did,  it  would  be  quite  impossible 
for  me  to  undertake  to  classify  them  in  respect  to  the  frequency  of  their  visits. 
Not  wishing  to  speak  disrespectfully  of  that  class  of  men,  they  were  somewhat 
annoying  as  well  as  frequent  in  their  applications. 

Question.  I  would  ask  you  if  there  is  a  window  upon  the  right  of  your  desk, 
as  it  was  situated  at  the  time  these  Middleton  bonds  were  negotiated,  that  would 
enable  a  man,  or  two  or  three  men,  to  stand  in  the  aisle  and  look  in  upon  the 
desk,  and  recognize  the  parties  standing  at  the  desk  l 

Answer.  There  was  on  the  right  of  the  desk,  at  some  distance,  what  may  be 
called  a  window- door.  That  door  opened  upon  a  gallery.  In  summer,  a  por- 
tion of  the  time,  that  door  would  be  opened  upon  that  gallery.  When  closed, 
my  recollection  about  that  window  is  that  the  glass  was  of  such  a  character  that 
a  person  could  not  see  through  it.  The  window  part  was  only  a  part  of  the 
door,  and  the  upper  portion.  From  the  rotundo  of  the  custom-house,  a  person 
standing  at  the  door  could  see  the  door  of  my  outer  office,  and  if  he  watched 
could  see  a  person  enter  it;  but  the  rule  was  invariable  that  parties  transacting 
business  in  that  office  entered  at  this  outer  office. 

Question.  And  came  through  into  your  office  ? 

Answer.  If  they  wished  to  enter  my  office,  my  particular  room,  they  came 
through. 

Question.  Was  not  the  door  to  the  right  of  your  desk,  leading  directly  into 
your  office,  closed — I  mean  from  the  rotundo — during  last  summer,  excluding 
persons  from  entering  in  that  way'? 

Witness.  Do  you  mean  excluding  them  from  entering  from  the  gallery 
directly  into  my  room  ? 

Mr.  Le  Blond.  Yes,  sir,  so  that  they  would  always  have  to  come  through  the 
outer  office. 

Answer.  Almost  invariably  that  door  was  kept  closed  upon  them,  as  I  have 
stated,  by  me,  for  two  reasons.  One  was  to  prevent  persons  coming  in  that  way 
who  wished  to  transact  business  at  my  office  ;  and  the  other  reason  was,  that  if  I 
wished  more  ventilation,  I  preferred  to  open  a  window  at  my  left,  which  opened 
into  Wall  street.  In  winter  and  in  the  cooler  parts  of  the  year  the  door  was 
locked,  as  it  was,  I  may  generally  s&y,  in  the  summer.  I  mean  the  window- 
door  that  goes  on  to  the  rotundo. 

Question.  Then  a  door  opened  from  your  room  into  the  outer  room  ? 

Answer.  Yes,  sir.  There  was  a  door  that  opened  from  my  room  into  the 
outer  office. 

Question.  Could  you  see  from  your  office  to  your  son's  desk  when  the  door 
was  opened  between  the  two  offices  ? 

Answer.  I  could  not  see  his  desk.  It  stood  in  such  a  position  that  I  could 
not  see  it  from  my  desk. 

Question.  Was  his  desk  within  the  railing,  as  the  room  was  arranged  last 
summer  ? 

Answer.  It  was  within  the  railing. 

Question.  Parties  entering  would  first  come  in  contact  with  him  before  they 
would  with  any  other  clerk,  would  they  not  ? 
Answer.  Not  necessarily. 

Question.  He  was  nearest  the  door  that  they  would  enter  at  ? 


NEW  YORK  CUSTOM  HOUSE. 


207 


Answer.  I  should  think  not ;  but  in  passing  from  the  outer  room,  and  for  the 
purpose  of  entering  mine,  they  would  pass  nearer  his  desk  than  any  other  desk  ; 
but  as  you  entered  straight  into  the  room,  and  kept  straight  on,  you  would,  but 
for  the  railing,  strike  two  desks  before  you  would  his. 

Question.  Was  his  desk  to  the  right  of  the  door  that  they  would  enter  at, 
but  in  the  corner  of  the  railing  beyond,  to  the  right  ? 

Answer.  As  a  person  would  enter  the  room,  his  desk,  properly  speaking,  would 
be  on  the  left  hand,  in  the  remote  corner  of  the  room.  There  was  a  stand-up  desk 
and  a  counter  put  upon  this  railing,  which  fronted  the  door  as  parties  came  in. 
That  desk  was  used  indifferently  by  all  the  parties.  It  was  nobody's  desk  in 
particular.  That  was  the  desk  at  which, as  a  general  rule,  the  filling  up  of  the 
bonds  was  done,  (that  desk  and  counter;)  and  whatever  clerk  filled  up  a  bond, 
lie  would  almost  invariably  use  that  desk  or  the  counter.  Under  the  pressure 
of  business  I  have  myself  taken  hold  to  assist  at  that  desk  and  counter  in  fill- 
ing up  bonds. 

Question.  Did  your  son  usually  fill  up  the  blanks  in  these  bonds  ? 

Answer.  This  is  a  point  I  could  not  speak  upon  definitely,  of  course,  without 
seeing  the  bonds  ;  but  my  impression  is — take  a  week  together — they  would  be 
filled  up  in  about  equal  proportions  by  the  two  clerks. 

Question.  What  were  the  special  duties  assigned  to  your  son  ? 

Answer.  The  duties  of  the  office,  so  far  as  the  clerks  were  concerned,  were 
filling  up  these  bonds,  recording  the  bonds,  copying  drafts  of  letters  drawn  by 
me  of  an  official  character,  and  handing  out  bonds  to  be  looked  at  by  parties 
who  had  a  right  to  look  at  them  with  reference  to  their  conditions,  or  something 
in  regard  to  their  cancellation,  &c.  Then  there  was  another  class  of  duties 
which  related  to  the  seizure  of  vessels  and  property  under  these  special  acts  of 
Congress.  Speaking  of  the  class  of  duties  excepting  that  last  mentioned,  the 
business  was  done,  so  far  as  I  could  now  say,  indifferently  by  two  clerks,  though 
I  more  generally  assigned  to  Mr.  Scott,  the  other  clerk,  the  matter  of  copying 
my  drafts  and  letters,  because  he  wrote,  I  thought,  a  better  hand;  but  with  that 
exception,  I  think  the  filling  up  of  bonds,  &c,  was  done  indifferently  by  them. 
I  never  made  any  special  assignment  of  duties  between  them  in  respect  to  these 
matters. 

Question.  Where  is  your  son  ? 

Answer.  He  is  in  the  city. 

Question.  Has  he  been  here  ever  since  these  occurrences  ? 
Answer.  He  has  been  here  a  part  of  the  time,  and  a  part  of  the  time  at  his 
grandmother's,  and  a  part  of  the  time  with  his  cousin. 
Question.  What  is  his  age? 
Answer.  He  is  about  twenty-two. 

By  the  chairman  : 

Question.  Do  you  know,  personally,  Mr.  Joseph  Eneas,  who  is  now  confined 
in  Fort  Lafayette  ? 

Answer.  Yes,  sir,  I  know  him. 

Question.  Has  he  been  a  shipper  of  goods  to  these  suspected  ports  heretofore  I 

Answer.  He  has  been  a  shipper  of  goods  to  Nassau ;  I  believe  the  met  to  be 
that  when  we  first  began  to  take  bonds  for  shipments  to  Nassau,  Mr.  Eneas  was 
then,  as  I  have  understood  and  believe,  a  shipper  there,  and  had  been  fur  a 
number  of  years. 

Question.  And,  of  course,  gave  bonds  as  others  did  1 

Answer.  Yes,  sir. 

Question.  With  principal  and  sureties  1 
Answer.  Yes,  sir. 

Question.  While  you  were  in  the  custom-house,  was  Win.  A.  Smalley,  who 


208 


NEW   YORK   CUSTOM  HOUSE. 


was  concerned  in  these  bonds,  an  employe*  or  attache  of  the  custom-house  in 
any  way — holding  any  position  there  ? 

Answer.  I  have  understood,  though  I  do  not  know  anything  about  it,  that 
at  one  time  he  was  a  clerk ;  and  then  I  understood,  from  authority  that  I  re- 
garded as  equally  trustworthy,  that  he  had  ceased  to  be  a  clerk.  I  never  saw 
him  there  as  a  clerk,  and  I  never  saw  him  do  any  business  as  a  clerk.  On  one 
or  two  occasions,  when  I  was  absent  from  the  city,  he  acted  as  a  notary,  simply 
as  a  notary,  in  taking  acknowledgments  and  administering  oaths  on  bonds. 

Question.  Did  he  go  on  any  of  these  bonds  of  Eneas  as  principal  or  surety,  to 
your  knowledge  ? 

Answer.  To  the  best  of  my  recollection  he  did  not. 

Question.  Did  he  negotiate  any  of  Eneas's  bonds — that  is,  I  mean  in  regard 
to  the  sureties  or  the  principals  ? 
Answer.  Not  to  my  knowledge. 

Question.  "Was  this  Eneas,  as  you  understood  it,  in  company  with  any  one, 
or  alone  in  his  ventures  ? 

Answer.  I  don't  know  that  I  ever  heard  that  Mr.  Eneas  was  in  company,  so 
far  as  his  business  came  across  my  desk,  and  that  was  all  I  knew  about  it ;  he 
seemed  to  be  doing  business  alone. 

Question.  Was  there  a  man  by  the  name  of  Hoffnung  connected  with  Eneas 
in  any  shape,  that  you  know  of? 

Answer.  I  can  only  say,  as  I  understood  it,  that  Mr.  Eneas,  as  1  have  already 
stated,  was  in  company  with  nobody,  nor  associated  in  any  way  with  anybody. 
All  I  know  of  his  business  was  as  it  appeared  in  passing  before  me,  and  my 
strong  recollection  is,  that  the  papers  showed  him  to  be  doing  business  alone. 

Question.  The  same  question  I  would  ask  you  with  reference  to  Lewis  Ben- 
jamin— whether  he  was  concerned  in  shipping  goods,  in  giving  bonds,  procuring 
sureties,  &c,  while  you  were  in  the  custom-house  ? 

Answer.  Lewis  Benjamin  shipped,  I  think,  some  goods,  and  I  recollect  that 
he  was  surety  on  some  bonds.  I  do  not  speak  quite  with  certainty  in  regard  to 
his  shipping  goods,  but  with  entire  certainty  in  regard  to  his  going  on  bonds. 
I  know  nothing  about  his  procuring  sureties. 

Question.  Do  you  remember  whose  bonds  lie  went  on  ? 

Answer.  I  recollect  that  he  went  on  the  bonds  of  this  Hoffnung. 

Question.  Did  you  personally  know  this  Benjamin  ? 

Answer.  I  never  knew  anything  of  him  that  I  am  aware  of  until  he  appeared 
to  give  the  first  bond. 

Question.  Did  you  know  him  after  that  anywhere  outside  of  your  office  in  the 
custom-house'? 

Answer.  I  do  not  now  recollect  with  certainty  of  ever  meeting  Mr.  Benjamin 
outside  of  the  custom-house,  but  I  may  have  done  so  ;  and  I  have  some  recollec- 
tion that  I  have  met  him  somewhere  in  the  street,  perhaps  elsewhere. 

Question.  Do  you  know  anything  of  the  pecuniary  circumstances  of  this 
German  (Hoffnung)  who  went  on  these  bonds? 

Answer.  Nothing  that  I  am  aware  of  that  I  now  recollect  excepting  what  he 
swore  to,  and  precisely  what  he  swore  to  I  do  not  recollect.  From  some  source, 
which  I  cannot  now  indicate,  I  got  the  impression  that  he  was  a  man  of  some 
considerable  property. 

Question.  To  the  best  of  your  recollection  what  would  be  the  probable  num- 
ber of  bonds  that  lie  wont  on  as  principal  or  surety? 

Answer.  I  think  he  went  generally  as  principal,  and  I  cannot  tell  the  number 
of  bonds,  but  my  impression  would  be  that  it  was  six,  eight,  or  nine ;  I  may 
have  got  the  number  too  many  or  too  few. 

Question.  Did  you  ever  know  him  even  by  sight  before  he  appeared  at  the 
custom-house  as  obligor  or  surety  ? 

Answer.  I  never  did. 


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209 


Question.  Did  you  have  any  transactions  with  him  at  the  custom-house  other 
than  the  execution  of  these  bonds? 

Answer.  Never,  excepting,  I  believe,  lie  once  made  an  affidavit  which  related 
to  some  of  these  bonds. 

Question.  Did  you  meet  him  outside  of  the  custom-hou3e ;  did  you  meet  him, 
or  have  any  transactions  with  him? 

Answer.  I  never  did;  I  may  have  met  him  in  the  street,  but  I  have  no  re- 
collection of  that  even. 

Question.  You  are  sure  that  you  had  no  other  transactions  with  him  than 
those  connected  with  these  bonds  ? 

Answer.  Nothing. 

Question.  What  time  were  you  in  the  habit  of  leaving  the  custom-house 
generally  ? 

Answer.  As  a  general  rule,  from  3  to  4 — generally,  immediately  after  3. 
Question.  Do  you  recollect  of  ever  meeting  hiin  after  business  hour3  at  the 
custom  house  ? 

Answer.  I  have  no  recollection  of  it. 

Question.  Do  you  recollect  of  ever  meeting  him  at  your  house? 
Answer.  I  never  saw  him  at  my  house;  I  am  very  positive. 
Question.  Did  you  ever  meet  him  in  that  vicinity  after  business  hours  ? 
Answer.  Never  to  my  knowledge. 

Question.  I  think  you  stated  that  you  never  had  any  transactions  with  him 
other  than  those  derived  from  bonds;  did  you  ever  have  any  pecuniary  trans- 
actions with  him  ? 

Answer.  Never,  except  it  was  at  my  desk  when  bonds  were  taken.  I  took 
the  notary  fees  of  the  parties. 

Question.  Have  you  ever  received  any  money  from  him  ? 
Answer.  Never. 

Question.  Did  you  ever  find  on  your  table  or  desk  an  envelope  with  an  enclo- 
sure of  50  or  100  dollars  in  50  or  i00  dollar  bills  1 
Answer.  Never  did. 
Question.  You  are  confident  of  it  ? 

Answer.  I  am.  I  wish  to  state  here,  in  all  frankness,  that  two  or  three  times 
I  received  some  money  at  my  house,  left  there  in  an  envelope ;  I  did  not  know 
who  it  came  from;  and  I  supposed,  while  the  transactions  occurred,  that  it  did 
not  relate  to  custom-house  matters ;  that  it  came  from  another  source. 

Question.  What  was  the  amount  contained  in  the  first  envelope? 

Answer.  I  should  think  it  was  $200. 

Question.  Do  you  recollect  whether  it  was  in  checks  or  bills  ? 
Answer^Bills. 

Question.  Of  what  denomination  ? 

Answer.  I  do  not  recollect ;  I  supposed  then  that  it  related  to  a  pecuniary 
transaction  in  which  a  party  had  embezzled  some  money  from  me,  of  which 
fact,  under  the  peculiar  circumstances  of  the  case,  I  was  requested  not  to  m.xko 
any  disclosure. 

Question.  Was  there  any  communication  accompanying  the  bills? 

Answer.  Nothing  at  all — nothing  but  a  naked  envelope. 

Question.  Did  you  have  no  clew  leading  to  the  source  from  which  it  came? 

Answer.  Not  the  slightest. 

Question.  Was  that  left  at  your  house  ? 

Answer.  It  was  left  at  my  house. 

Question.  AVas  it  left  in  your  absence? 

Answer.  It  was  left  in  my  absence. 

Question.  Did  you  ascertain  from  the  bell-tender  what  person  or  what  sort 
of  a  person  it  was  who  left  it? 

Answer.  I  think  I  asked,  "Who  left  this  letter  hero?" 
H.  Rep.  Com.  Ill  14. 


210 


Ni:\V    YORK   CUSTOM  HOUSE. 


Question.  Do  you  recollect  the  answer? 
Answer.  1  do  not ;  it  gave  me  no  information. 
Question.  How  long  ago  was  that  ? 

Answer.  It  was  this  last  summer ;  the  date,  more  precisely,  I  could  not  give. 

Question.  Were  there  any  marks  or  dates  on  the  envelope  ? 

Answer.  Nothing. 

Question.  Was  it  addressed  to  you? 

Answer.  Yes,  sir ;  there  were  no  marks  upon  it  that  I  noticed  ;  I  think,  as  I 
opened  it,  I  ripped  it  up,  supposing  that  it  was  a  letter. 

Question.  Did  that  transaction  ever  occur  more  than  once,  or  a  transaction 
of  a  similar  character  ? 

Answer.  Yes,  sir. 

Question.  What  was  the  amount  when  that  transaction  occurred  again  ? 
Answer.  I  do  not  recollect  now;  I  think  it  was  $100  the  second  time,  but  am 
not  sure. 

Question.  What  was  your  idea  about  the  source  from  which  the  second  anony- 
mous amount  came  ? 

Answer.  I  inferred  that  it  came  from  the  same  source  as  the  first  ;  I  took 
some  pains  to  try  and  find  out  from  what  source  it  came,  but  I  could  not  make 
up  my  mind. 

Question.  Did  you  and  Mr.  HofFuung  ever  exchange  words  about  it,  or  ever 
allude  to  the  matter  ? 

Answer.  Never  a  word,  direct  or  indirect. 

Question.  Did  you  ever  allude  to  the  matter  to  any  one  else  ? 

Answer.  I  think  not,  except  as  I  have  just  stated,  upon  trying  to  learn  the 
source.  I  do  not  remember  distinctly,  but  my  present  impression  is  not,  except 
as  stated. 

Question.  Did  you  ever  allude  to  it  with  the  person  or  persons  from  whom 
you  say  you  thought,  in  view  of  that  money  transaction,  it  might  have  come  ? 

Answer.  The  party  to  whom  1  referred  did  not  live  in  this  city — quite  remote 
from  the  city.  I  subsequently  saw  a  party  connected  with  him  nearly,  and 
made  a  suggestion  to  him  which  did  not  seem  to  be  understood,  and  I  did  not 
make  any  further  allusion  to  it. 

Question.  What  was  the  interval  between  the  first  and  the  second  finding  of 
the  money,  should  you  think  ? 

Answer.  I  cannot  recollect. 

Question.  Can  you  not  indicate  to  the  committee  within  a  month  or  within 
what  month  either  one  of  these  transactions  did  take  place  ? 

Answer.  These  transactions  took  place  in  July  and  August,  I  believe. 
Question.  What  would  you  say  was  the  interval  between  them  ^ 
Answer.  I  should  think  three  or  four  weeks. 

Question.  Did  you  ever  have  any  reason  to  believe  in  either  of  these  instances, 
that  this  money  came  from  this  German,  (Hoffnung)  ? 
Answer.  Never  the  slightest. 
Question.  You  never  suspected  him  ? 

Answer.  Never.  In  these  answers  you  will  understand  me  as  speaking  of  the 
periods  Avhile  the  transactions  were  occurring. 

Question.  Were  there  no  transactions  between  you  and  him,  official  or  personal, 
which  would  give  rise  to  any  such  suspicion  ? 

Answer.  Never  the  slightest.  In  regard  to  his  business  I  did  it  as  I  did 
every  other  man's  business.  When  you  ask  me  what  suspicions,  the  suspicion 
did  cross  my  mind  that  it  might  have  had  some  relation  to  custom-house  matters; 
but  I  never  had  the  slightest  suspicion  that  it  had  relation  to  his  matters,  and  I 
thought  over  the  matter  a  good  deal  to  see  if  I  could  make  up  my  mind  about 
it.    I  am  now  speaking  of  the  times  when  the  occurrences  took  place. 

Question.  You  say  that  the  thought  did  cross  your  mind  that  it  might  have 


NEW  YORK  CUSTOM  HOUSE. 


211 


had  some  reference  to  custom-house  matters  ;  do  you  recollect  how  the  envelope 
or  envelopes  were  addressed  ? 

Answer.  I  do  not,  except  they  were  addressed  in  my  name. 

Question.  Addressed  to  you  as  deputy  collector,  or  H.  13.  Stanton,  or  Mr. 
Stanton  ? 

Answer.  I  think  there  was  nothing  but  my  name;  I  am  pretty  sure  that 
there  was  no  official  attachment  to  the  name ;  but  I  paid  no  attention  to  the 
envelopes,  because  they  did  not  indicate  anything. 

Question.  Your  mind  did  not  fasten  upon  any  custom-house  transaction  with 
sufficient  probability  with  which  that  suspicion  was  connected,  to  give  it  any 
weight  ? 

Answer.  None  whatever.  And  the  reason  why  the  suspicion  arose  in  my 
mind  was,  1  had  heard  all  along  in  the  custom-house  that  some  such  things 
were  sometimes  done.  The  suspicion  did  cross  my  mind  also  in  respect  to  the 
custom-house,  that  it  might  have  been  done  by  some  of  the  officials  in  the  custom- 
house of  a  higher  grade  to  compensate  me  for  the  discharge  of  my  duty,  say,  in 
respect  to  seizures  ;  I  understanding  the  met  to  be,  that  the  high  officials  in  the 
custom-house  did  give  some  pay  or  per-centage  to  parties  in  someway,  in  con- 
nexion with  the  seizure  of  goods  in  which  they  had  been  instrumental.  I  had 
spoken  pretty  decidedly  against  the  legality  and  propriety  of  this  course,  but 
it  was  merely  a  thought  that  passed  across  my  mind. 

-Question.  Did  you,  while  in  the  custom-house,  ever  receive  through  the 
channel  already  spoken  of,  or  any  other,  by  finding,  or  by  its  being  put  into 
your  hands  or  laid  on  your  desk,  or  in  any  other  method  whatever,  a  sum  or 
sums  of  money  other  than  in  the  two  instances  you  have  now  specified  ? 

Answer.  I  will  mention  one  fact  which  I  could  never  account  for :  I  did  not 
keep  a  bank  account  anywhere ;  I  was  standing  at  my  desk  and  receiving 
notaries'  fees  daily,  which  I  put  into  my  pocket.  On  one  occasion  I  found  rather 
more  money  than  I  supposed  I  ought  to  have,  and  I  never  could  tell  whether  I  was 
mistaken  or  otherwise;  I  was  not  conscious  of  having  received  it  there,  aud  I 
could  not  tell,  as  I  was  constantly  receiving  and  paying  out  money.  The  sum 
was  not  very  large  ;  I  think  it  was  about  $50,  or  so. 

Then,  as  I  am  upon  this  subject,  I  will  say,  further,  that  I  had  understood, 
(I  have  heard  it  repeatedly  said,)  that  persons  doing  business  at  the  custom- 
«  house  were  in  the  habit  of  making  presents  to  officials.  On  one  occasion  I 
returned  to  my  house  from  business,  and  I  found  there  a  box,  a  pretty  large  one, 
containing  some  brandy,  some  wine,  some  pickles,  and  things  of  that  sort,  and  1 
think  it  contained  some  cigars,  and  with  it  there  was  a  card  stating  from  whom 
it  had  come.  Some  of  my  family  knowing  nothing  about  it,  and  presuming  it 
was  some  purchase  made  by  me,  had  opened  the  box,  and,  I  think,  had  taken 
one  of  the  jars  or  bottles  of  pickles,  it  being  about  dinner  time,  and  had  opened 
it.  As  soon  as  I  saw  the  box  and  card,  I  had  it  nailed  up,  (I  really  forget  now 
whether  that  bottle  of  pickles  was  put  back,  but  I  think  it  was  so  far  used  that 
it  could  not  be,)  and  caused  it  to  be  returned  the  next  morning  with  a  note  to 
the  party.  A  copy  of  that  note  I  believe  I  have.  I  wrote  a  very  civil  note, 
simply  stating  to  him  that  I  did  not  do  business  in  that  way,  and  he  made  an 
explanation  to  me  that  he  meant  nothing  wrong;  I  accepted  the  explanation, 
and  that  was  the  end  of  it. 

Upon  another  occasion,  while  something  in  relation  to  one  of  these  bonds 
was  pending  about  the  sufficiency  of  the  sureties,  I  think,  when  1  happened  to 
be  just  out  of  my  room  for  a  brief  period,  a  large  box  of  cigars  was  left  there. 
I  cannot  now  tell  exactly  how  I  knew  from  whence  ir  came.  I  put  the  box 
into  a  drawer,  went  in,  did  the  business  very  stringently,  and  1  think  it  was  a 
day  or  two  before  it  was  all  completed,  and  at  this  moment  there  happened  to 
be,  perhaps,  eight  or  ten  persons  in  my  room,  and  when  I  got  through  I  handed 
the  box  of  cigars  back  to  the  gentleman.    There  were  two  or  three  custom- 


212 


NEW  YORK  CUSTOM  HOUSE. 


bouse  officials  in  there,  and  1  think  I  made  the  remark  to  the  party  that  I  did 
not  often  smoke;  and  he  said,  "Oh,  this  is  of  no  account;  one  of  my  clerks  sent 
it  up."  I  said,  "  1  will  not  take  it;"  and  1  think  one  of  the  custom-house 
officials,  in  a  kind  of  laughing  way,  said  lie  would  take  it.  I  forget  who  it  was, 
hut  I  think  he  took  the  box. 

Question.  You  stated  that  you  were  in  the  habit  of  receiving  notarial  fees, 
that  you  were  not  in  the  habit  of  keeping  a  bank  account,  and  that  one 
time  you  found  an  excess  which  you  could  not  account  for;  what  was  the 
amount  of  notarial  fees  that  you  charged  ? 

Answer.  That  would  vary  according  to  the  number  of  parties  to  a  bond. 

Question.  What  was  the  rule  adopted  in  that  office  as  to  the  amount  of  fees — 
so  much  per  seal  ? 

Answer.  In  the  great  majority  of  bonds  the  fee  was  fifty  cents;  if  there  were 
seven  or  eight  parties,  as  would  be  the  case  sometimes,  the  fee  would  be  in  pro- 
portion ;  fifty  cents  would  be  where  there  were  two  parties.  If  parties  made  an 
affidavit  it  would  be  still  larger,  besides  the  acknowledgment. 

Question.  How  much  larger  would  it  be  in  the  case  of  an  affidavit ? 

Answer.  I  think  my  rule  was  to  charge  for  affidavit  and  certificate  25  cents 
per  name,  and  the  acknowledgment  the  same.  1  understood  that  that  was 
rather  lower  than  was  charged  by  other  notaries.  I  understood  that  other  no- 
taries, in  cases  where  I  took  50  cents,  took  75  cents. 

Question.  Were  there  any  cases  where  the  fees  went  up  to  three,  five,  and 
even  more  dollars  ? 

Answer.  There  were  cases  where  they  come  to  three,  and  sometimes  to  five 
dollars,  and  sometimes  there  were  some  additional  affidavits  drawn  and  taken, 
or  something  of  that  kind,  which  1  took.  I  used  to  be  applied  to,  to  a  limited 
extent,  to  do  notaries  business  which  did,  or  did  not,  relate  to  some  of  these 
bonds — administering  oaths,  taking  affidavits,  &c. 

Question.  Were  there  many  instances  where  the  fee  was  two,  three,  and  even 
five  dollars  ? 

Answer.  I  think  there  were  a.  good  many  where  it  would  be  two  dollars. 
Frequently  there  were  five  parties  to  a  bond,  and  five  men  making  affidavits. 

Question.  Do  you  think  that  there  is  any  instance  where  they  went  up  as 
high  as  15  or  20  dollars  ? 

Answer.  There  was  none  where  it  related  exclusively  to  taking  bonds,  though  • 
there  might  have  been  some  affidavits  to  bonds  on  some  other  business  upon 
which  I  charged  as  other  notaries  charge. 

Question.  Do  you  recollect  of  any  instance  or  instances  which  would  warrant 
charging  15  or  20  dollars  in  drawing  the  affidavit  and  attaching  the  notarial 
seal  in  custom-house  matters  ? 

Answer.  I  have  drawn  up  series  of  affidavits  where  I  have  done  all  the  work, 
and  which  it  was  no  part  of  my  official  duty  to  do,  where  I  charged  such  sums 
as  I  deemed  reasonable — very  reasonable.  1  charged  for  doing  this  business — 
taking  the  affidavits,  or  taking  facts  and  reducing  them  to  the  form  of  affidavits, 
both  in  connexion  with  bonds  already  taken,  and  in  relation  to  other  business 
not  connected  with  bonds;  but  1  did  this  to  a  limited  extent,  and  always  claimed 
the  right  to  do  so. 

Question.  Could  a  case  occur  where  you  examined  an  affidavit  already  pre- 
pared, simply  supervising  it,  running  it  over  and  making  an  interlineation  of  a 
line,  taking  it  home  with  you,  where  you  charged  the  man  five  or  ten  dollars 
for  it? 

Answer.  I  think  no  such  case  as  you  have  mentioned  could  occur,  but  some- 
times parties  would  bring  affidavits  partially  drawn,  or  what  might  be  called 
"roughed  out,"  and  I  have  taken  these  affidavits,  with  other  papers,  and  have 
put  them  into  the  appropriate  shape,  for  which  I  charged  what  I  regarded  as  a 
reasonable  and  usual  price;  but  no  case  where  I  would  merely  look  it  over,  as 


NEW  YORK  CUSTOM  HOUSE. 


213 


you  indicate,  put  in  a  line,  or  bo  simple  a  matter  as  that,  and  charge  as  you 
suggest.  I  claimed  the  right,  I  will  say  here,  though  deputy  collector,  to  do 
business  just  as  others  did  it  as  a  notary  public,  for  I  was  a  notary  public,  hav- 
ing all  the  rights  and  privileges  of  a  notary  public.  I  was  also  a  lawyer,  and 
while  in  the  custom-house  I  did  a  good  deal  of  professional  business,  the  greater 
part  of  which  did  not,  in  any  way  the  most  remote,  relate  to  revenue  matters, 
and  some  of  which  did,  and  I  never  understood  that  I  had  not  the  right  to  do 
it,  and  in  doing  such  business  I  always  charged  fair  prices. 

Question.  There  has  been  a  complaint  made  that  custom-house  officials  have 
been  in  the  habit  of  charging  fees  in  excess  of  what  they  ought  to  charge,  and 
if  there  is  any  explanation  that  could  be  given  in  regard  to  matters  0/  this  kind 
we  would  like  to  hear  it ;  not  that  the  committee  care  if  you  received  $10,000 
in  your  profession,  outside  of  the  custom-house. 

Answer.  In  response  to  your  suggestion,  I  would  say  that  all  this  matter  I 
put  in  a  letter  to  the  Secretary  of  the  Treasury,  which  letter  was  printed  in  the 
newspapers  of  this  city  last  November.  It  was  drawn  up  with  care  and  partic- 
ularity, and  it  covers  all  facts  and  classes  of  facts  and  cases  relating  to  this 
matter,  and  as  it  was  drawn  up  when  the  matters  were  more  fresh  in  my  recol- 
lection than  they  are  now,  I  would  beg  leave  respectfully  to  refer  you  to  that 
letter,  as  containing  a  full  exposition  of  this  matter. 

Question.  Did  not  this  bond  business  originate  or  commence  while  you  were 
in  the  custom-house — I  mean  to  these  suspected  ports  ? 

Answer.  Yes,  sir. 

Question.  Did  it  commence  with  your  bureau  and  continue  with  it  while  you 
were  there  ? 

Answer.  It  was  assigned  by  the  collector  to  my  bureau,  though  there  were 
bonds  taken  by  some  other  officials — some  other  bonds  of  a  general  character, 
in  some  respects  different  from  those  which  I  received.  The  number  of  bonds 
taken  at  my  bureau,  I  believe,  Avhile  I  was  there,  was  about  5,000.  A  large 
number  of  them  wrere  taken  before  the  instructions  were  received  to  take  bonds 
in  regard  to  these  suspected  ports,  and  some  of  this  class  of  bonds  were  taken 
by  others.  A  good  many  of  the  bonds  taken  in  regard  to  these  suspected  ports 
were  not  taken  in  any  sense  by  me.  Many  of  them  were  taken  in  my  absence. 
Quite  a  large  number  of  them  were  taken  while  I  was  there.  On  one  occasion 
I  was  away,  I  think,  a  month  at  a  time,  when  there  were  a  great  many  taken  ; 
and  then  while  I  was  there  I  might  be  absent  at  the  court  or  marshal's  office, 
attending  to  business  connected  with  the  custom-house,  and  bonds  were  often 
taken  of  this  class  when  I  was  not  in. 

Question.  You  state,  I  think,  in  the  letter  to  which  you  have  referred,  that 
all  the  fees  you  received,  exclusive  of  your  salary,  was  about  $200  ? 

Answer.  About  $3,000. 

Question.  And  salary  inclusive  ? 

Answer.  No,  sir;  exclusive  of  the  salary;  i.  e.,  $3,000  in  fees. 
By  Mr.  Le  Blond  : 

Question.  I  would  ask  you  if  you  have,  since  you  resigned  your  position  in 
the  custom-house,  had  any  conversation  with  Henry  C.  Smith,  to  whom  we 
have  alluded  ? 

Answer.  I  have  never  spoken  to  him,  nor  had  any  communication  with  him, 
directly  or  indirectly,  excepting  when  the  examination  took  place  in  the  pres- 
ence of  the  Solicitor  of  the  Treasury,  and  then  everything  that  I  said  to  him  was 
in  the  nature  of  questions  to  him  as  a  witness;  and  among  other  questions  I  put 
to  him  was  this:  whether  I  had  ever  conferred  with  him  upon  this  subject;  and 
his  response  was  "no,"  which  was  true,  and  I  have  never  from  that  time  spoken 
to  him  on  any  subject. 


214 


NEW  YORK  CUSTOM  HOUSE. 


Question.  Had  you,  while  such  examination  was  pending,  a  conversation  with 
him  at  either  of  the  hotels  in  this  city,  or  elsewhere  ? 
Answer.  I  had  none. 

Witness.  I  wish,  respectfully,  to  ask  the  committee  whether  anybody  has 
testified  that  I  did  have  any  such  conversation  with  Mr.  Smith? 

The  chairman.  The  committee  say  that  the  chairman  should  answer  Mr. 
Stanton.  There  is  testimony  before  the  committee  that  Mr.  Smith  appeared 
before  the  Solicitor  of  the  Treasury  and  gave  his  testimony;  that  you  were  seen 
■with  him  that  night,  and  that  the  next  morning  he  came  before  the  commission 
and  gave  an  entirely  different  version  of  matters  under  oath. 

Witness.'  I  wish  to  respond  to  that.  My  very  decided  recollection  in  respect 
to  the  testimony  of  Mr.  Smith  before  the  Solicitor  is — and  I  think  I  am  not 
mistaken — that  he  never  appeared  there  but  upon  one  occasion,  and  certainly 
the  witness  who  has  stated  what  the  chairman  has  now  said  a  witness  has  stated 
is  entirely  mistaken.  I  do  not  wish  to  use  a  stronger  term,  which  I  might  be 
justified  in  doing.  I  ought  to  state  here,  that  it  had  occurred  to  me  several 
times,  in  the  course  of  this  examination,  to  respectfully  ask  the  committee,  as  I 
did  in  this  instance,  whether  Avitnesses  had  testified  before  them  in  the  manner 
which  the  questions  of  the  committee  to  me  would  seem  to  imply,  but  1  waived  it, 
and  I  did  not  do  it. 

By  the  chairman  : 

Question.  Did  you  conduct  the  correspondence  with  foreign  ports  arising 
from  these  clearances  of  shipments,  &c,  to  suspected  ports — I  mean  by  that, 
the  consular  correspondence? 

Answer.  I  do  not  recollect  that  I  ever  wrote  to  those  consuls  in  a  way  which 
would  be  regarded  strictly  as  official  correspondence.  I  may  possibly  have 
written  one  or  two  official  letters  which  were  to  be  signed  by  the  collector,  but 
I  have  no  recollection  of  it;  but  aside  from  that,  I,  of  my  own  motion,  did 
write  to  the  consuls  at  Matamoras  and  at  Nassau.  So  far  I  am  certain.  I  do 
not  recollect  whether  I  ever  wrote  in  what  would  be  regarded  my  unofficial 
capacity  to  the  consuls  at  Bermuda  and  St.  John,  but  I  certainly  conferred  with 
them  personally,  in  this  city,  upon  the  same  class  of  subjects  upon  which  I 
wrote  to  the  consuls  at  Matamoras  and  at  Nassau.  The  subject  of  my  letters 
was  to  have  them  be  as  explicit  as  they  could  in  regard  to  their  certificates,  and 
also  to  communicate  information  to  the  custom-house  here  in  regard  to  any 
goods  arriving  there  which  they  believed  were  being  improperly  used.  I 
received  a  letter  or  two  from  the  consul  at  Matamoras  in  response,  addressed  to 
me  individually,  and  I  think  one  or  two  from  the  consul  at  Nassau  ;  and  I 
received  three  or  four  from  the  consul  at  Bermuda ;  and  1  cannot  say  whether 
they  were  strictly  in  response  to  a  letter  I  wrote  to  him,  (because  I  have  no 
recollection  of  writing  to  him.)  or  whether  they  were1  in  response  to  the  con- 
ference I  had  with  him  in  this  city.  These  letters,  I  presume,  were  addressed 
to  me,  on  the  outside  wrapper,  (and,  for  aught  I  know,  on  the  inside,)  as  deputy 
collector.  The  letters  were  communicated  to  the  collector;  and  I  recollect 
putting  three  or  four,  or  more,  at  one  time  into  the  hands  of  the  collector,  that 
arrived  here  after  I  had  left  the  office.  Those  were  from  Bermuda.  1  received 
two  from  Nassau;  one  was  an  anonymous  letter,  giving  us  some  information, 
from  a  party  who  professed  to  have  gone  out  there  from  here ;  and  I  believe  in 
the  letter  he  said  that  he  had  had  some  conversation  with  me,  and  in  response 
to  the  conversation  he  had  made  certain  investigations,  and  he  said  I  would 
recollect  who  he  was.  The  information  which  he  communicated  was  very 
vague,  and  he  wound  up  by  saying  that  he  must  have  $S,000  (or  more)  in 
cash,  in  advance,  before  he  gave  any  more  information.  He  signed  this  letter 
with  some  anonymous  designation.  That  letter  I  also  gave  to  the  collector.  I 
could  not  make  out  who  the  party  was.    All  these  letters  the  collector  kept. 


NEW  YORK  CUSTOM  HOUSE. 


215 


The  name  of  the  consul  at  Matamoras  was  L.  Pierce,  jr.  The  name  of  the 
consul  at  Nassau  (1  do  not  know  whether  he  is  consul  now)  was  Seth  C.  Iian- 
ley,  and  the  vice-consul's  name  was  Thompson.  I  am  pretty  sine  that  T  received 
one  letter  from  Thompson,  but  I  am  not  sure  that  I  ever  received  a  letter  from 
Mr.  Ilanlcy.  The  name  of  the  consul  at  Bermuda  is  Allen,  but  I  am  not  quite 
confident  of  his  first  name. 

Question.  Did  you  ever  make  any  private  communications  to  either  of  these 
consuls  ? 

Answer.  None  whatever,  excepting  these  letters  might  be  regarded  in  the 
light  of  quasi  private. 

Question.  Did  you  ever  have  any  private  correspondence  with  them  unknown, 
and  to  be  unknown,  to  the  collector,  with  reference  to  bonded  goods  ? 

Answer.  I  never  had  any  communication  with  them,  whatever,  thai  was  not 
of  a  nature  to  call  out  a  response,  which,  if  there  had  been  any,  and  it  had 
been  of  any  consequence,  would  have  been  communicated  to  the  custom-house 
authorities.  In  the  sense  in  which  I  understood  you  to  put  the  question,  1 
never  had  any  private  communication  with  them  whatever. 

Question.  When  you  left  the  office  did  you  take  any  paper,-  from  there, 
claiming  them  to  be  private  papers  ? 

Answer.  I  did  take  what  were  strictly  my  private  papers;  I  had  a  good 
many  there  which  related  to  business  wholly  disconnected  with  the  custom- 
house, and  I  am  sure  I  took  none  that  the  custom-house  had  any  right  to. 

Question.  Were  any  consular  letters  whatever  taken  by  you  as  private 
letters,  or  as  belonging  to  yourself,  privately,  under  the  claim  that  they  were 
private  letters  % 

Answer.  My  impression  is,  not.  I  wish  to  explain  about  the  Bermuda  letters. 
Some  of  these  came  to  me  after  I  left  the  office,  and  were  directed  to  the  custom- 
house. Other  letters  of  a  strictly  private  character  continued  for  some  time  to 
come  to  me,  directed  to  the  custom-house,  but  they  did  not  relate  to  the  busi- 
ness of  the  custom-house  at  all.  I  used  to  get  these  private  letters  as  long  as 
they  came.  They  would  lie  there  sometimes  for  a  week  before  I  would  get 
them,  but  those  Bermuda  letters  which  came  to  me  after  I  left  there  were 
all  handed  to  the  collector.  If  I  took  any  letter  addressed  to  me  as  deputy 
collector  from  any  consul  or  otherwise,  why,  it  was  either  a  letter  of  no  import- 
ance, or  whatever  it  did  relate  to  had  been  disposed  of  or  passed  away.  My 
letters,  I  will  say,  used  very  often  to  come  to  me,  though  wholly  of  an  unofficial 
character,  addressed  to  me  as  deputy  collector;  and  all  the  time  I  was  in  the 
custom-house  this  was  very  common.  I  should  say  here  that  I  did  take  letters 
from  the  custom-house,  addressed  to  me  as  deputy  collector,  which  related  to 
applications  for  office,  some  of  them  old  and  some  of  them  fresh,  asking  my 
interposition  in  behalf  of  either  the  writer  or  some  friend  of  his  for  some  office 
in  the  custom-house;  and,  as  I  had  ceased  a  good  while  before  to  undertake  to 
interfere  in  these  matters,  I  do  not  think  I  ever  communicated  all  these  letters 
to  the  collector. 

By  Mr.  Le  Blond  : 

Question.  Among  the  letters  you  did  take,  were  there  any  that  disclosed  facts 
pertaining  to  the  vessel  Jose? 

Answer  None  whatever,  and  for  the  best  of  reasons — that  1  never  received 
any  letter  addressed  to  me  from  anybody  in  respect  to  the  subject,  that  I  have 
any  recollection  of,  and  I  think  I  am  right  in  my  recollection. 

By  the  chairman  : 

Question.  Did  you  have  any  correspondence  with  any  official  or  unofficial 
personage  at  Nassau,  or  any  of  the  island  ports,  in  any  manner  whatever  per- 


21G 


NEW  YORK  CUSTOM  HOUSE. 


taining  to  the  clearance,  bonding,  receipt  and  disposal  of  goods  coming  from 
this  port,  which  was  unknown,  and  to  be  unknown,  to  the  collector? 

Answer.  Never;  and  I  am  very  confident  that  I  never  wrote  to  any  parties 
in  those.ports  except  the  consuls,  and  I  have  already  explained  my  acts  on  that 
subject.  I  speak  of  these  matters  with  as  much  certainty  as  a  person  can  who 
is  being  subjected  to  a  cross-examination  in  regard  to  testimony  which  has 
doubtless  gone  in  before  the  committee,  and  about  which  I  know  nothing.  In 
the  sense  in  which  I  understand  you  to  put  that  question,  T  never  had  any  such 
correspondence. 

By  Mr.  Le  Blond  : 

Question.  I  ask  you  if  you  received  a  letter  or  letters  from  Marshal  Murray 
disclosing  facts  in  reference  to  the  Jose,  or  any  other  vessel  supposed  to  be  en- 
gaged in  the  improper  business  of  taking  goods  for  the  purpose  of  being  tran- 
shipped to  the  southern  confederacy  ;  if  so,  what  were  the  contents  of  that  letter 
or  letters? 

Answer.  I  will  reply  first  in  regard  to  the  Jose.  The  case  of  the  Jose,  I 
think,  arose  some  time  in  October  last.  The  first  I  ever  heard  of  it  was,  one 
morning  an  inspector,  who  occasionally  had  communication  with  my  department, 
came  into  ray  office  and  informed  me  that  he  thought  there  were  grounds  for 
seizing  or  detaining  (I  do  not  recollect  which)  the  Jose,  a  vessel  which  I  under- 
stood to  be  cleared  or  was  about  to  clear  to  some  foreign  port,  I  think  Havana. 
I  think  I  had  a  brief  conference  with  the  collector  about  it,  but  upon  that  point 
I  am  not  quite  sure  ;  but,  at  any  rate,  I  immediately  issued  an  order  for  the 
detention  of  the  Jose  for  examination ;  I  believe  those  were  the  words  I  used. 
I  think  half  an  hour  after  this — certainly  soon  after — Mr.  Clinch,  the  assistant 
collector,  came  to  my  desk  with  an  open  letter  in  his  hands,  very  short  and  very 
brief,  written  by  Marshal  Murray,  of  this  city,  to  Hiram  Barney,  collector  of  the 
port  of  New  York.  The  letter  stated  in  substance  (for  I  cannot  recollect  its  con- 
tents) that,  from  facts  in  the  possession  of  the  marshal,  or  which  had  been  com- 
municated to  him,  he  thought  there  were  grounds  for  detaining  the  vessel  or 
for  instituting  an  examination,  or  something  like  that.  The  letter  was  brought 
to  me  open  ;  Mr.  Clinch,  the  assistant  collector,  had  read  the  letter ;  he  called 
my  attention  to  it ;  stood  at  my  desk  while  I  read  it ;  and  I  stated  to  him  that 
I  had  just  given  an  order,  on  information  communicated  to  me  by  an  officer,  for 
the  detention  of  the  vessel ;  he  made  a  response  somewhat  like  this  :  "  Ah  !  then 
you  have  anticipated  me."  Whether  I  took  the  letter  I  do  not  recollect ;  but 
probably  he  left  it  with  me.  As  I  know  that  much  has  been  said  about  this 
case — if  not  before  this  committee,  certainly  elsewhere — I  wish  to  repeat  that  the 
letter  in  question  from  the  marshal  was  written  officially  by  him  to  the  collec- 
tor of  the  port  of  New  York  ;  officially  went  to  the  collector  in  the  first  instance, 
and  was  either  opened  by  him  or  by  his  assistant,  Mr.  Clinch,  and  I  know  had 
been  read  and  considered  by  Mr.  Clinch.  The  letter  was  very  short,  and  com- 
municated no  facts  whatever,  but  spoke  of  some  facts  or  information  which  had 
been  communicated  to  the  marshal.  The  letter  was  not  addressed  to  me  in  any 
sense ;  I  never  saw  it  until  after  it  had  been  opened  in  the  collector's  office 
proper,  and,  at  all  events,  read  by  the  assistant  collector.  I  soon  afterwards 
learned,  in  respect  to  the  seizure  of  the  Jose,  that  a  collision  had  in  some  way 
arisen  between  the  collector's  office  and  the  naval  office,  or  some  of  their  offi- 
cers, or  some  parties  in  the  surveyor's  office,  in  regard  to  who  had  been  the  most 
vigilant  in  seizing  the  Jose.  I  understood  that  the  naval  office  had  information 
which,  in  the  judgment  of  that  office,  authorized  the  seizure  of  the  Jose.  I  was 
no  party  to  any  of  the  irritation  that  grew  out  of  this  conflict  of  jurisdiction,  if 
I  may  call  it  by  that  name.  This  Jose  was  said  to  belong  to  a  British  subject. 
I  think  the  day  after  she  was  seized  (but  whether  she  was  seized  the  very  day 
I  gave  the  order  T  do  not  know)  Mr.  Barney  received  a  letter  from  the  British 


NEW  YORK  CUSTOM  HOUSE. 


217 


consul  at  this  port,  asking  him,  in  substance,  why  the  Josd  had  been  seized.  He 
had  a  conference  with  mo,  and  I  stated  to  him  that  I  thought  there  was  no 
hurry  in  replying  to  that  letter;  that  the  case  was  under  examination,  and  that 
I  did  not  know  yet  the  grounds  upon  which  we  should  proceed.  Just  at  ihat  time 
a  very  severe  domestic  calamity  had  happened  in  the  family  of  the  collector;  it 
was  of  the  severest  description,  and  it  made  him  a  good  deal  nervous  about 
matters  of  business  and  everything  else.  I  drafted  a  note,  at  his  suggestion,  to 
the  British  consul,  saying,  in  substance,  that  the  officers  of  the  customs  would 
make  an  examination  of  the  case,  and  when  they  had  arrived  at  the  facts  they 
would  communicate  them  to  him  if  it  were  deemed  expedient.  I  think  the  mat- 
ter rested  there  a  day  or  two,  or  two  or  three  days — perhaps  no  more  than  two — 
when  the  British  consul  wrote  another  letter  to  the  collector,  asking,  in  substance, 
if  he  had  concluded  the  examination,  and  wanting  to  know  what  the  reasons 
were  for  seizing  the,  Jose.  I  think — and  I  am  very  confident  of  it — that  then  there 
was  a  conference  between  the  collector  or  assistant  collector  and  myself,  (I  am 
not  sure  that  Mr.  Barney  was  present  much  of  the  time,)  in  which  the  assistant 
collector  and  myself  both  arrived  at  the  conclusion  that  the  interference  of  the 
British  consul  in  this  matter,  at  this  juncture,  was  uncalled  for,  and  I  suggested 
that  we  should  not  answer  the  letter  at  present ;  but  about  that  time  Mr. 
Barney  again  manifested  great  solicitude  that  there  should  be  some  answer 
framed  ;  1  told  him  the  officers  were  examining  the  case,  and  that  we  were  not 
ready  to  answer;  that  I  understood  the  naval  officer  had  some  facts  about  it; 
so  then  there  was  a  conference  between  the  naval  officer  and  the  assistant  col- 
lector and  myself  in  regard  to  it,  and  the  naval  officer  said  he  had  facts  sufficient 
to  hold  the  vessel.  I  told  him  I  was  very  desirous  (as  Mr.  Barney  being  then 
in  a  painful  situation)  to  relieve  him,  and  1  would  like  to  have  him  name  any 
facts,  if  it  were  proper,  in  order  to  answer  the  consul's  note.  The  naval  officer 
intimated  that  he  had  facts,  but  had  not  got  them  all,  and  I  understood  that  he 
concurred  with  me  in  the  opinion  that  the  British  consul  was  overdoing  the 
matter;  at  all  events,  I  believe  Mr.  Barney  did  write  another  note  to  the  Brit- 
ish consul,  of  a  vague  character,  stating  that  we  wrere  examining  the  case,  and 
we  would  let  him  know  the  result.  Then  there  was  another  conference  in  the 
naval  officer's  room,  in  which  I  was  present,  the  naval  officer,  and  one  of  his 
deputies,  and  in  that  conference  the  naval  officer  remarked,  in  substance, 
"  Well,  if  the  collector's  office  releases  the  Jose  I  shall  seize  her  again." 
I  responded  to  it  at  once,  "  Mr.  Denison,  the  collector  will  not  release  that 
vessel  with  my  permission,  for  I  think  there  are  grounds  for  her  deten- 
tion; what  I  want  to  do  is,  to  be  able  to  write  to  the  consul  and  relieve 
the  collector's  anxiety  about  this  matter."  I  believe  at  that  conference,  or  one 
immediately  after,  I  suggested  this  course,  viz  :  that,  as  I  knew  the  general 
grounds  upon  which  we  must  have  seized  the  vessel,  (if  she  were  liable  to  seiz- 
ure,) I  thought  the  best  way  to  get  along  with  the  nutter  was  for  me  to  write 
the  ordinary  letter  to  the  district  attorney,  sending  the  case  up  for  adjudication, 
and  I  said  (for  I  saw  there  was  a  good  deal  of  heat  about  the  matter,  which  I 
did  not  understand,  and  which  I  think  had  been  infused  into  the  head  officials 
by  some  of  the  under  officers,  who  had  been  in  collision  about  it  as  to  who  had 
been  the  most  expert  in  seizing  the  vessel)  "instead  of  quarrelling  about  this 
matter,  let  us  make  common  stock  of  all  the  information  we  have  got — and  we 
may  possibly  need  it  all — for  the  condemnation  of  the  vessel  and  the  cargo  ;" 
thereupon  (1  cannot  tell  whether  immediately  or  very  soon  afterwards)  1  drew 
up  a  letter  in  the  usual  form  addressed  to  the  district  attorney  (this  letter  to  be 
signed,  of  course,  by  the  collector  as  usual)  saying,  I  have  seized  the  Josd,  and 
she  is  now  lying  at  this  port,  and  I  have  to  request  that  you  will  institute  pro- 
ceedings for  her  condemnation  under  such  and  such  clauses  of  such  and  such 
statutes  The  rules  of  the  custom-house  require  that  all  letters  of  an  official 
character  by  subordinates  should  be  first  sent  to  the  assistant  collector,  read  and 


218 


NEW   YORK   CUSTOM  HOUSE. 


approved  by  him,  receive  his  check  upon  them,  and  then  be  laid  before  the  col- 
lector, Mr.  Barney,  for  his  signature.  Not  long  after  the  writing  of  that  letter, 
that  is,  the  same  day.  1  think,  I  was  sent  for  to  tli^offiee  of  the  assistant  col- 
lector, (Mr.  Clinch,)  and  he  says,  "  the  collector  does  not  like  to  sign  this  letter 
as  it  is,  though  it  is  in  the  usual  form,"  and  he  proposes  this  alteration,  (and  the 
alteration  was  in  the  handwriting  of  the  assistant  collector,)  "from  information 
in  the  possession  of  the  naval  office,  and  which  the  naval  office  deems  sufficient 
for  that  purpose,  I  have  seized  the  Jose,"  &c.  I  give  the  substance  of  this, 
which  was  in  the  handwriting  of  the  assistant  collector.  The  letter  was  now  in 
such  a  form  that  it  made  it  necessary  to  have  it  recopied.  I  took  the  letter  and 
showed  it  to  Mr.  Franklin,  the  deputy  naval  officer,  saying,  that  Mr.  Barney 
proposed  that  this  clause  be  put  in  that  letter.  "  "Well,"  says  he,  "  I  think  I 
will  show  this  to  the  naval  officer;"  so  he  took  the  letter,  and  I  have  no  doubt 
he  showed  it  to  the  naval  officer.  A  letter  went  up  to  the  district  attorney,  I  be- 
lieve, that  day,  but  whether  it  had  this  clause  in  it,  or  some  modified  clause,  I 
do  not  know  ;  the  case  reached  the  district  attorney's  office,  and  was  subse- 
quently tried.  Now,  I  wish  to  say  that  in  these  conferences — and  nearly  all  of 
them  were  in  the  presence  of  the  assistant  collector — whether  I  alluded  to  that 
letter  from  the  marshal,  which  the  assistant  collector  had  brought  to  me  open,  or 
not,  I  have  no  recollection ;  but  I  would  as  soon  have  thought,  in  a  formal  way, 
of  calling  his  attention  to  the  fact  that  he  was  assistant  collector  of  the  port  of 
New  York,  duly  commissioned  and  sworn,  as  I  would  to  the  fact  of  a  letter  from 
the  marshal  addressed  officially  to  the  collector,  and  which  I  never  saw  until  it 
had  been  opened,  certainly,  by  the  assistant  collector,  and  read  by  him,  and 
brought  to  my  desk  opened,  and  which  communicated  to  the  collector's  office 
no  specific  information  at  all. 

By  Mr.  Rollins  : 

Question.  Have  you  any  reason  to  believe  that  the  collector  ever  saw  the 
letter  ? 

Answer.  When  the  assistant  collector  brought  it  to  me  1  did  not  bestow 
much  thought  upon  it,  but  I  supposed  that  it  had  been  opened  and  read  by  the 
collector,  as  other  letters  were  read  by  him.  It  has  been  stated,  if  not  before 
this  committee,  certainly  outside  of  the  committee,  that  I  suppressed  that  letter, 
or  withheld  it  from  the  knowledge  of  the  collector.  The  charge  is  wholly 
untrue ;  and  in  regard  to  the  fact  of  its  suppression  from  the  collector  or  his 
assistant,  it  is  impossible  that  it  should  be  true.  There  is  not  the  slightest 
shadow  of  foundation  for  such  a  charge.  The  letter  of  the  marshal  made  very 
little  impression  upon  my  mind,  for  the  reason  that  it  communicated  no  specific 
information,  not  a  solitary  fact ;  and  in  reply  to  what  has  been  said  elsewhere, 
if  not  testified  to  here,  I  wish  to  say  that  I  never  had  any  thought  of  taking  any 
steps  to  release  the  Jose.  On  the  contrary,  I  took  all  steps  to  hold  on  to  her, 
and  I  never  had  any  communication  in  respect  to  the  Jose,  or  with  anybody 
who  claimed  to  be  her  owner  or  have  any  interest  in  her,  except  this,  which  I 
will  give  precisely  as  it  occurred.  I  understood  that  the  party  who  claimed  to 
own  the  Jose  was  Joseph  Eneas.  While  this  matter  was  pending  (whether  it 
was  before  or  after  we  had  sent  the  case  to  the  district  attorney's  office  I  do 
not  know)  Mr.  Eneas,  in  the  regular  course  of  his  business,  came  to  my  desk 
with  a  bond  on  a  clearance  of  goods  to  Nassau.  I  stated  to  Mr.  Eneas  that  I 
would  not  clear  his  goods  until  I  had  seen  the  collector.  He  asked  me  why. 
Says  I,  "  I  will  let  you  know  when  I  return  from  seeing  the  collector."  I 
went  to  see  the  collector,  but  he  was  not  in.  I  saw  Mr.  Clinch,  the  assistant 
collector,  and  I  stated  to  him  that  Eneas  had  come  to  clear  some  goods  for  Nas- 
sau, and  that  I  would  not  take  his  bond  in  view  of  the  facts  in  respect  to  the 
Jose,  unless  I  had  the  authority  of  the  collector's  department  explicitly.  He 
then  asked  me,  in  respect  to  the  proposed  clearance,  if  there  was  anything  out 


NEW   YORK  CUSTOM  HOUSE. 


219 


of  the  usual  course,  and  I  told  him  no.  "Would  you  take  the  bond  if  the  Jose 
matter  were  not  in  its  present  position  ?"  Says  I,  "  Certainly  I  should  ;  it,  is 
in  the  regular  course  of  business."  "Then,"  said  he,  "I  see  no  objection  to 
your  taking  the  bond."  I  then  returned  to  my  desk  and  proceeded  to  take  the 
bond,  and  1  think  Eneas  asked  me  why  I  wanted  to  see  the  collector.  1  told 
him  because  I  would  not  take  that  bond,  in  view  of  the  facts  in  regard  to  the 
Jose,  unless  I  had  the  special  direction  of  the  collector's  department ;  and  he 
made  a  remark  just  about  like  this  :  "  The  government  has  seized  my  vessel, 
and  I  mean  to  make  it  pay  for  her."  That  is  the  only  interview  I  ever  had 
upon  the  subject  with  Mr.  Eneas,  and  T  never  had  any  interview  with  anybody 
else,  pending  these  proceedings,  who  claimed  or  was  supposed  to  have  any  in- 
terest in  the  Jose.  And  of  all  the  official  acts  that  I  ever  performed,  either  in 
the  custom-house  or  out  of  it,  1  never  peifoimed  one  in  which  my  course  of  con- 
duct was  more  straight-forward  and  undisguised,  and  done  in  more  perfect  good 
faith,  than  in  respect  to  my  connexion  with  the  Jose.  I  know  not  what  charge 
may  have  been  made  or  implied  in  anything  that  has  gone  into  the  testimony, 
but  I  wish  to  say  that  any  version  of  the  matter  which  is  not  substantially  in 
accordance  with  what  I  have  stated  is  erroneously  false. 

Question.  What  time  in  October  was  this  letter  of  Marshal  Murray's  written 
do  you  recollect  1 

Answer.  I  do  not  recollect,  nor  do  I  recollect  whether  it  was  submitted  to  me 
on  the  day  of  its  date,  but  I  presume  it  was,  or  the  next  day.  I  never  saw  it 
or  heard  of  it  until  it  was  brought  to  me  open  by  the  assistant  collector. 

Question.  How  long  before  the  seizure  of  the  Jose  did  this  take  place,  or  how 
soon  after  the  reception  of  the  letter  was  the  Jose  seized  ? 

Answer.  I  do  not  recollect.  This  case  of  the  Jose  was  one  in  which,  under 
the  statute,  it  was  deemed  necessary,  in  order  that  the  government  should  make 
out  a  case,  that  the  vessel  should  actually  commence  her  voyage,  and,  therefore, 
she  might  not  have  been  arrested  for  a  day  or  two  after  that,  because  she  was 
to  be  arrested  while  sailing,  so  that  it  could  be  said  six1  had  commenced  her 
voyage. 

Question  This  letter  suggested  that  the  marshal  was  in  possession  of  evidence 
that  would  warrant  the  seizure  of  the  Jose,  did  it  not  ? 

Answer.  My  recollection  of  the  letter  is  substantially  as  I  have  stated  it.  I 
did  not  place  much  reliance  upon  that  letter  as  governing  my  official  action  in 
respect  to  the  seizure  of  the  Jose  ;  but  I  relied  upon  the  information  or  facts 
which  I  understood  the  naval  officer  had  in  his  possession. 

Question.  You  had  frequent  conversations  with  the  naval  officer  and  Mr. 
Hanscom  with  reference  to  the  proposed  seizure  of  the  Jose  after  the  reception 
of  this  letter :  did  you  communicate  to  them  the  contents  of  the  letter,  or  say 
anything  to  them  about  it  1 

Answer.  I  do  not  remember  whether  I  did  or  did  not.  T  should  think  it  very 
likely  that  I  stated  the  fact  that  the  collector  had  received  a  letter  from  the 
marshal  upon  the  subject,  but  I  am  not  sure  that  I  did.  At  all  events,  there 
was  no  intentional  suppression  on  my  part,  for  all  I  knew  upon  the  subject  was 
also  known  to  the  assistant  collector. 

Question.  You  speak  of  not  mentioning  the  matter  to  Mr.  Barney.  This 
letter  was  referred  to  you  by  Mr.  Clinch  properly,  you  being  the  proper  officer 
having  in  charge  that  department:  would  not  the  leiter  naturally  take  that 
reference  1 

Answer.  The  letter  would  perhaps  naturally  be  presented  to  me.  The  first 
question  put  to  me  in  regard  to  this  matter  not  only  embraced  the  Jose,  but 
spoke  of  other  communications  from  the  marshal.  Occasionally,  but  very 
rarely,  the  marshal  did  address  a  letter  or  note  to  the  custom-house  upou 
these  subjects,  but,  so  far  as  I  recollect,  they  were  addressed  to  the  collector. 
If  I  acted  under  them  at  all,  as  I  have  no  recollection  of  any  specific  case,  I 


220 


NEW   YORK   CUSTOM  HOUSE. 


endeavored  to  cany  out  the  views  of  the  marshal,  to  follow  out  his  facts,  ifjthey 
communicated  any;  but  I  have  uo  recollection  of  any  such  specific  letter  from 
him  upon  this  subject,  except  this  one  in  regard  to  the  Jose. 

Understanding  that  the  committee  do  not  propose  to  ask  me  any  more  ques- 
tions to-day,  I  wish  now  to  state  that  yesterday  the  committee  showed  me  a 
statement  drawn  by  Mr.  Dingley,  or  a  copy  of  Mr.  Dingley's  statement,  in 
which  certain  bunds  were  at  that  time  said  to  be  missing,  and  it  also  contained 
what  he  regarded  as  some  irregularities  in  bonds.  Looking  at  the  statement, 
inasmuch  as  the  bonds  are  only  given  by  their  recent  numbers,  it  is  impossible 
for  me  to  give  any  information  upon  the  subject  at  the  present  time,  until  I  can 
have  an  opportunity  to  examine  and  ascertain  what  the  bonds  are  as  indicated 
by  the  numbers;  and  I  wish  to  reserve  the  right,  if  that  testimony  is  deemed  of 
any  importance,  to  examine  that  table  specifically,  when  I  can  do  it  without 
any  inconvenience  to  the  committee,  and  then  make  a  statement,  if  I  shall  deem 
it  important,  in  regard  to  it.  I  am  willing  to  accommodate  the  committee  by 
making  that  statement  in  writing  in  respect  to  these  bonds,  and  under  oath,  and 
J  would  like  an  opportunity  at  some  time  to  do  this.  I  would  also  state  that  if 
any  evidence  has  been  given  in  here  before  them,  either  by  way  of  report  from 
the  custom-house  or  otherwise,  of  a  specific  character  in  regard  to  certain  and 
particular  bonds,  whether  they  arc  missing  or  irregular  in  any  particular,  or  in 
any  maimer  touching  them,  I  would  like  the  opportunity  to  be  able  to  examine 
the  records  at  the  custom-house,  and  give  testimony  in  regard  to  them,  if  it  seems 
important. 

March  24,  1864. 

H.  B.  Stanton  recalled. 

The  committee  will  recollect  that,  at  the  close  of  my  examination  on  yester- 
day, I  stated  that  I  thought  it  possible,  inasmuch  as  some  of  the  bonds  upon  which 
they  had  examined  me  had  not  been  for  some  months  particularly  before  my 
mind,  that  I  might,  therefore,  have  erred  in  my  recollection  of  some  of  the  facts, 
and  that,  perhaps,  upon  mature  reflection,  I  might  wish  to  come  in  the  next  day 
and  correct  errors  upon  other  points,  if  any  were  made  by  me.  The  committee 
granted  me  the  privilege  to  do  so.  Before  the  examination  was  concluded  yes- 
terday, I  began  to  think  that  I  had  made  one  or  two  errors,  which  I  now  wish 
to  speak  of,  in  regard  to  money  which  clandestinely  came  to  my  house.  Upon 
mature  reflection,  and  after  conversing  with  some  of  my  family,  I  think  there 
were  three  instances  of  this  kind.  I  believe  I  did  not  state  otherwise  in  my 
testimony  of  yesterday,  though,  perhaps,  that  might  be  inferred  from  what  I  said. 
I  am  now  of  the  opinion  that  there  were  three,  but  no  more.  Whether  one  of 
these  three  envelopes  containing  money  first  came  to  the  custom-house,  as 
seemed  to  be  implied  in  the  questions  put  to  me  yesterday,  and  thence  to  my 
dwelling-lions*-,  1  cannot  positively  say.  It  may  have  been  so.  If  it  was,  then, 
if  I  had  any  agency  in  it,  it  must  have  been  something  in  this  way:  Nearly 
all  unofficial  letters  and  notes  for  me  came  to  the  custom-house.  I  received 
many  such  letters  and  notes  in  a  day.  If  pressed  with  business,  my  habit  was 
tl  put  them  in  my  pocket  unopened  as  they  came,  and  to  take  them  to  my 
house.  It  is  clearly  within  my  recollection  that  it  has  sometimes  happened  that 
such  letters  were  for  the  moment  laid  aside  at  my  house,  and  then  through  for- 
getfulness  allowed  to  lie  unopened  for  three  or  four  days,  perhaps  longer.  It 
might  occur  that  some  envelope  containing  money,  and  nothing  more,  and 
which  I  supposed  to  be  a  hitter,  might  have  been  left,  on  my  desk,  or  even 
handed  to  me  at  the  custom-house,  and  be  that  day  taken  to  my  house  with 
other  letters  and  remain  unopened  for  three  or  four  days  or  more;  and  if  after- 
wards I  found  it,  I  supposed  that  it  had  been  originally  left  at  my  house.  I 
recollect  that  two  or  three  letters  containing  money,  or  drafts,  and  which  had 


NEW  YORK  CUSTOM  IIOUSE. 


221 


no  relation  at  all  to  custom-house  matters,  did  go  through  this  round  during  the 
last  year.  Returning  particularly  to  and  speaking  of  one  of  the  three  instances 
about  which  I  am  testifying,  it  might  have  occurred  in  the  way  mentioned.  In 
my  testimony  yesterday  1  stated  that  1  was  under  the  impression  that  these 
occurrences  took  place  in  July  or  August,  but  I  was  not  quite  certain.  Since  I 
then  testified,  I  have  refreshed  my  recollection  by  comparison  of  dates  with 
other  matters  whose  dates  I  can  fix.  I  am  now  of  the  opinion  that  one  or  two 
of  these  occurrences  wen1  as  late  as  September,  and  perhaps  the  last  one  was 
even  early  in  October.  I  think  the  first  one  did  not  occur  until  August,  but  it 
may  have  been  late  in  July.  I  now  think  that  the  interval  between  the  occur- 
rences was  longer  than  that  stated  in  my  testimony  of  yesterday,  where  I  stated 
it  was  three  or  four  weeks.  I  now  infer  it  must  have  been  longer  ;  but  I  cannot 
speak  positively  about  any  of  these  dates.  If  the  first  envelope,  or  any  of  the 
others,  as  seemed  to  be  implied  in  one  of  the  questions  yesterday,  contained 
any  written  line  or  memorandum,  it  must  have  been  very  brief,  and  certainly 
gave  no  clue  to  the  source  from  which  it  came.  I  do  not  recollect  that  there 
was  any.  So,  too,  if  there  wa«  any  mark  on  the  envelope,  it  did  not  arrest  my 
attention.  1  am  sure  there  was  no  conspicuous  mark,  (and  so  think  some  of  my 
family,)  and  my  recollection  now  is,  supposing  they  were  regular  letters,  that 
the  envelopes  were  pretty  much  torn  up  in  the  opening.  Since  I  testified  yes- 
terday, it  has  been  brought  to  my  recollection  by  a  member  of  my  family  that 
on  the  occasion  when  one  of  these  envelopes  was  brought  to  my  house  I  was  at 
home.  It  was  in  the  evening,  and  I  understand  it  was  a  pretty  dark  evening. 
A  person  rang  the  door  bell,  stood  upon  the  steps,  handed  in  the  envelope, 
which,  of  course,  looked  exactly  like  a  letter,  and  immediately  left.  It  does 
not  seem  to  be  certain  who  received  the  envelope.  Certainly  I  have  not  the 
faintest  idea  of  who  the  person  was  that  delivered  it.  This  was  not  the  first 
occasion — perhaps  the  second.  I  am  pretty  sure  that  the  sum  enclosed  in  the 
first  envelope  was  $200.  I  am  also  pretty  sure  that  the  sum  in  one  of  the 
others  was  $100.  In  regard  to  the  other,  I  cannot,  after  the  best  recollection 
I  can  bestow  upon  the  subject,  say  whether  the  sum  was  $100  or  $200.  The 
balance  of  my  judgment  inclines  to  the  latter  sum,  because  it  also  inclines  to 
the  opinion,  upon  examination  since  yesterday,  that  the  sum  total  received  in 
the  way  mentioned  was  $500,  rather  than  $400.  But  I  may  be  mistaken  in 
supposing  that  it  was  more  than  $400.  On  the  other  hand,  it  is  barely  possible 
there  were  four  such  occurrences,  rather  than  three,  which  made  up  the  aggre- 
gate. 

Referring  to  my  testimony  of  yesterday,  I  will  add  to  it  by  saying  that  1 
did  not  suspect  that  Hoffhung  was  sending  me  this  money,  because  I  could  con- 
ceive of  no  reason  why  he  should.  I  had  nothing  to  do  with  his  business,  ex- 
cept officially — never  exchanged  a  word  with  him  in  regard  to  it,  except  offi- 
cially at  my  desk,  according  to  my  best  recollection,  and  never  did  him  any 
favor,  and  never  contemplated  doing  him  any,  nor  did  I  suppose  him  the  prin- 
cipal man  in  the  business  in  which  he  appeared  as  a  party.  I  think  I  could 
say  that  I  hardly  knew  him  by  sight.  As  to  intimating  to  any  one  whence  I 
thought  the  mrmey  came,  as  implied  in  some  of  the  questions  yesterday,  I  never 
intimated  anything  upon  this  subject,  except  as  already  stated,  (I  believe  yes- 
terday,) when  making  some  indefinite  remark  while  trying  to  get  a  clue  to  the 
transactions;  and  if  any  persons  understood  me  as  pointing  particularly  to  Hoff- 
nung,  they  were  mistaken,  for  the  reasons  just  stated,  though  if  any  such  per- 
sons knew  that  lloffnung  was  the  man,  they,  of  course,  might  easily  misunder- 
stand me. 

I  made  a  slight  error  in  my  statement  yesterday  in  saying  that  certain  money 
was  embezzled  from  inc..  The  precise  fact  was,  that  a  pretty  large  sum  of  money 
had  been  collected  for  me  by  an  attorney,  and  belonged  to  me,  and  had  been 
cmbezzzled  from  him  by  a  person  knowing  this  fact;  and  this  fact  of  embezzle- 


222 


M'.W    YORK   CUSTOM  HOUSE. 


mcnt  a  relative  of  the  |'arty  desired  me  to  keep  secret,  on  his  assurance  that  he 
would  refund  it  to  me  as  soon  as  possible,  and  having  just  before  these  trans- 
actions been  pressing  hard  for  payment,  I  did  think  it  possible  that  the  moneys 
in  question  were  instalments  on  that  debt.  As  to  suspicions  concerning  the 
custom-house,  I  will  add  to  what  I  stated  yesterday,  that  however  it  might  have 
been  before,  yet,  when  charges  in  regard  to  alleged  irregularities  in  my  depart- 
ment, and  to  the  alleged  abstraction  of  bonds,  and  negotiations  on  that  subject, 
and  some  alleged  facts  in  relation  to  matters  connected  therewith,  first  came  to 
my  knowledge,  and  about  which  before  1  had  never  heard,  known,  or  suspected 
anything,  I  did  then  seriously  suspect  that  the  sending  of  this  money  to  me 
had  been  intended  in  some  way  to  mix  me  up  in  and  embarrass  me  in  regard  to 
some  past  or  contemplated  future  transactions  of  some  sort  in  the  custom-house, 
which  parties  might  have  thought  would  ultimately  come  to  my  knowledge. 
However,  I  have  not  yet  been  able  to  satisfactorily  arrive  at  any  definite  judg- 
ment on  this  point. 

But  dismissing  conjecture,  I  wish  to  say  on  this  point,  in  the  broadest  sense 
in  which  the  terms  can  be  interpreted,  that  fr#m  whatever  source  or  sources 
this  money  came,  if  it  in  any  way  related  to  custom-house  matters,  it  did  not  come 
to  me  in  accordance  with  any  expectation  of  mine,  nor  with  any  previous 
knowledge  of  mine,  nor  in  consequence  of  any  exaction,  solicitation,  agreement 
or  understanding  on  my  part,  either  express  or  implied,  direct  or  indirect,  with 
any  person  or  persons  whatsoever,  either  in  relation  to  any  past,  pending  or  con- 
templated transaction  whatever,  nor  in  consequence  of  it  did  I  ever  perform 
any  act  or  omit  to  perform  any  act  whatever. 

In  reflecting  upon  what  I  said  yesterday  in  regard  to  the  Jose,  and  without 
having  the  testimony  read  over  to  me,  I  think  that  I  have  been  in  error  perhaps 
in  regard  to  the  chronological  order  in  which  I  have  stated  some  of  the  occur- 
rences. But  I  do  not  wish  in  this  to  modify  in  any  degree  what  I  understood 
to  be  the  main  fact  that  there  was  no  suppression  by  me  of  the  letter  of  the 
marshal  to  the  collector.  And  I  wish  further  to  say,  if  I  should  hear  all  the 
testimony  read  which  I  have  given,  I  might,  doubtless,  detect  some  other  errors, 
and  very  likely  I  might  wish  to  modify  it  upon  mature  reflection,  for  I  have 
been  testifying  about  matters,  many  of  which  long  since  passed,  and  which 
involve  dates,  amounts,  names,  conversations  and  particular  facts  and  transac- 
tions respecting  an  office  that  had  in  it  probably  ten  thousand  papers  of  various 
sorts,  and  in  respect  to  many  of  which  I  had  to  perform  two  or  three  official 
acts  each,  and  often  under  a  great  pressure  of  business,  and  always  with  an 
inadequate  clerical  force.  Therefore,  I  may  have  committed  error.*  in  relation 
to  my  testimony  which  I  ought  to  correct,  and  I  may  have  likewise  erred  in 
the  transaction  of  some  of  this  great  amount  of  business. 

By  Mr.  Le  Blond  : 
Question.  What  amount  was  embezzled  from  this  attorney  of  yours  I 
Answer.  I  cannot  state  the  precise  amount  originally  embezzled,  but  the 

amount  due  to  me  upon  that  transaction  last  summer  was  more  than  a  thousand 

dollars. 

Question.  To  whom  did  you  communicate  the  fact  of  the  receipt  of  these 
several  sums  of  money  ? 

Answer.  To  some  of  my  family. 

Question.  To  any  one  else  outside  of  your  family  I 

Answer.  I  think  not  definitely  and  explicitly  until  alter  what  may  be  called 
these  difficulties  arose,  and  then  I  stated  the  facts  in  a  general  way  to  a  lawyer 
who  was  acting  as  my  adviser. 

Question.  If  this  money  had  come  through  your  attorney,  or  the  party  who 
gave  you  the  assurance  that  he  would  make  an  effort  to  have  the  money  refunded 
to  you,  would  he  not  have  stated  the  fact  in  a  letter  accompanying  the  money  ? 


NEW  YORK  CUSTOM  HOUSE. 


223 


Answer.  1  did  not  suppose  that  it  came  from  the  attorney  or  the  party  who 
had  given  me  the  assurance,  but  I  supposed  that  it  came  from  the  implicated 
party,  who  I  understood  (though  I  do  not  know  the  fact)  had  never  admitted 
the  fact.    I  never  spoke  with  that  party  about  this  embezzlement. 

Question.  Could  a  person,  at  the  time  you  were  in  the  custom-house,  stand 
upon  the  outside  in  the  aisle  and  look  through  the  window  and  discern  persons 
at  your  desk,  or  persons  standing  there  talking  with  you  ? 

Witness.  Do  you  mean  outside  of  the  office  entirely  and  on  the  gallery? 

Mr.  Le  Blond.  Yes,  sir;  where  that  walk  is  terminated 

Witness.  You  mean  the  inner  gallery  ? 

Mr.  Le  Blond.  Yes,  sir. 

Answer.  My  impression  in  regard  to  the  character  of  that  window  is  not 
very  distinct,  but  I  believe  if  the  door  were  closed  they  could  not ;  and  my 
impression  also  is,  that  for  very  much  of  this  time  a  high  bookcase  stood  right 
before  and  against  that  door  in  my  office. 

Question.  Did  the  high  bookcase  stand  there  at  the  time  that  these  Middleton 
bonds  were  given  to  you,  or  at  the  time  that  they  were  alleged  to  have  been 
abstracted  ? 

Answer.  Waiving  the  question  as  to  my  want  of  knowledge  of  the  main 
fact  that  they  were  ever  abstracted,  I  cannot  give  the  dates  in  any  close 
approximation,  even  assuming  it  was  done. 

Question.  Do  you  know  by  general  report  when  they  were  taken  or  abstracted? 

Answer.  They  were,  I  believe,  said  to  have  been  taken  during  a  portion  of 
the  summer  and  fall  of  1S63.  Speaking  from  the  same  authority,  I  think  they 
were  not  taken  at  all  from  what  may  be  called  my  room,  for  that  was  not  the 
room  where  the  bonds  were  kept,  but  it  was  the  outer  room. 

Question.  At  that  time  in  the  summer  or  fall  of  1863  did  the  high  desk  stand 
against  this  door  ? 

Answer.  I  should  think  not  all  this  summer,  because  we  did  sometimes  have 
that  door  opened  ;  and  as  to  the  following  fall,  so  early  as  September  and 
October,  I  cannot  speak  positively. 

Question.  Then,  if  the  desk  was  not  against  the  door,  could  a  person  from 
the  outside  see  into  your  room  so  as  to  discern  a  man  sitting  or  standing  at 
your  desk  ? 

Answer.  I  dislike  to  speak  positively  upon  this  point,  because  my  impres- 
sions about  the  character  of  that  window  are  very  vague.  If  I  could  go  and 
see  the  window  I  would  be  willing  to  give  an  opinion.  My  best  impression  is, 
as  stated  yesterday — that  is,  that  a  person  could  not  see  through. 

Testimony  of  D.  Cady  Stanton. 

New  York,  April  18,  1SG4. 

D.  Cady  Stanton  sworn. 
By  the  chairman  : 

Question.  Are  you  the  son  of  H.  B.  Stanton,  late  deputy  collector  ? 

Answer.  Yes,  sir. 

Question.  How  old  are  you  ? 

Answer.  I  am  in  my  22d  year. 

Question.  Were  you  employed  in  the  custom-house  during  your  father's  con- 
nexion with  it  ? 
Answer.  Yes,  sir. 

Question.  How  long  were  you  employed  there? 

Answer.  I  was  there  from  September,  1861,  until  the  28th  of  October,  1S63. 
Question.  In  what  capacity  ? 


•224 


NEW   YORK  CUSTOM  HOUSE. 


Answer.  Bond  clerk,  I  suppose.    1  had  charge  of  bonds  principally. 
Question.  Were  you  in  the  same  room  with  your  father? 
Answer  No,  sir. 

Question.  Did  the  rooms  connect  or  adjoin? 
Answer.  Yes,  sir. 

Question.  What  did  your  duties  consist  of  as  bond  clerk? 

Answer.  I  used  to  make  out  the  bonds,  and  see  to  filling  them  out;  and  when 
Mr.  Waddell  was  hard  pressed  I  assisted  him  in  making  out  a  statement  of  the 
seizures. 

Question.  Who  gave  you  directions  as  to  how  the  bonds  were  to  be  made  out? 

Answer.  There  were  three  or  four  forms,  and  they  were  copied  in  a 
book,  by  which  1  could  always  tell.  In  some  important  cases  I  would  confer 
with  my  father  or  Mr.  Waddell,  chief  clerk. 

Question.  Unless  there  was  something  unusual,  you  would  take  these  forms 
and  make  out  the  bonds  by  them  ? 

Answer.  Yes,  sir. 

Question.  When  you  had  filled  out  the  body  of  the  bonds,  what  was  the  next 
step  ? 

Answer.  To  have  a  revenue  stamp  put  on — to  see  that  it  was  put  on  before 
the  parties  went  in  to  swear.  We  sent  them  in  to  my  father ;  if  he  was  not 
there,  Mr.  Waddell  would  attend  to  it. 

Question.  Did  you  take  them  in  to  your  father  ? 

Answer.  We  wrould  send  them  in  with  the  parties ;  father  never  took  them 
until  after  the  bonds  were  given. 

Question.  Did  you  ever  act  as  subscribing  witness  ? 

Answer.  Sometimes.  Mr.  Scott  would  sometimes  or  Mr.  Waddell;  I  did,  as 
a  general  thing. 

Question.  After  the  bonds  were  signed,  and  the  parties  had  justified,  what  be- 
came of  them  ?    Were  they  brought  out  to  you  ? 

Answer.  No,  sir;  father  would  keep  all  the  bonds  in  his  desk  until  the  next 
morning.  Of  course,  he  did  not  have  time  during  office  hours  to  register  them; 
and  the  next  morning,  after  he  had  looked  them  over  carefully  to  see  that  they 
were  correct  and  seals  and  stamps  on,  he  would  then  send  them  out  to  us,  and, 
if  Mr.  Scott  was  engaged,  I  would  record  them  and  file  them  away. 

Question.  They  were  not  recorded  in  the  room  where  your  father  was  ? 

Answer.  No,  sir;  they  were  simply  left  there.  He  had  them  locked  up  in 
his  desk  over  night,  and  in  the  morning,  when  he  came,  I  would  go  in  generally 
and  ask  for  the  bonds,  or  Mr.  Scott  would. 

Question.  Were  they  invariably  locked  up  in  there  ? 

Answer.  Yes,  sir. 

Question.  Locked  up  by  him,  and  he  had  the  key  ? 
Answer.  Yes,  sir;  that  is,  when  he  was  there. 

Question.  You  know  probably  that  the  committee  are  aware  that  bonds  were 
given  up.  The  committee  would  like  to  have  you  state  who  first  negotiated  or 
talked  with  you  about  the  giving  up  of  these  bonds — how  came  it  to  happen, 
and  about  what  time. 

Answer.  I  think  it  commenced  about  the  lattei  part  of  June,  or  the  1st  of 
July,  1863.  I  think  the  first  one  who  spoke  to  me  in  relation  to  it  was  Henry 
Clay  Smith,  but  I  am  not  positive  about  it. 

Question.  Do  you  recollect  how  he  came  to  accost  you  or  introduce  the  sub- 
ject? 

Answrer.  No,  sir;  I  don't  know  as  I  do,  but  I  think  it  was  in  the  office, 
rotundo,  or  water-closet — I  don't  remember  exactly  where  it  was. 

Question.  Did  he  say  that  he  had  been  accustomsd  to  obtain  these  favors 
before  ? 


NEW  YORK  CUSTOM  IIOUSK. 


225 


Answer.  No,  sir:  because  the  bonds  were  never  authorized,  and  we  did  not 
do  anything  about  them  until  1862  some  time. 

Question.  You  do  not  recolleet  how  he  introduced  it  at  first  ? 
Answer.  No,  sir,  I  do  not. 

Question.  Are  you  certain  in  your  own  mind  that  lie  was  the  first  one  who 
approached  you  upon  the  subject? 
Answer.  1  am  certain  of  that. 

Question.  Do  you  recollect  the  nature  of  the  proposition  lie  made  to  you — 
what  inducements  he  held  out  to  you  ? 

Answer.  He  offered  me  $2r>  if  I  would  abstract  the  bonds.  He  told  me  they 
would  not  be  worth  anything.  I  did  not  want  to  do  anything,  and  I  hesitated 
for  three  or  four  days,  if  1  remember  right. 

Question.  And  after  that  you  did  abstract  bonds  ? 

Answer.  Yes,  sir. 

Question.  Were  there  any  obstacles  or  difficulties  in  the  way  of  doing  it; 
was  there  any  one  else  in  the  room  with  you  at  the  time? 
Answer.  No,  sir. 

Question.  Did  you  occupy  the  ante  room  alone? 

Answer.  No,  sir ;  Mr.  Waddell,  the  chief  clerk,  was  there,  Mr.  Scott  and  two 
messengers. 

Question.  And  this  thing  could  be  done  without  their  knowledge? 
Answer.  Yes,  sir. 

Question.  Will  you  tell  us  how  the  thing  was  brought  about,  so  that  Mr. 
Waddell  and  the  other  persons  in  the  room  should  not  know  anything  about  it? 

Answer.  Smith  would  sometimes  meet  me  outside  of  the  custom-house  after 
office  hours,  or  he  might  see  me  going  to  the  water-closet  and  follow  me  there, 
or  he  might  see  me  at  the  office  some  time  when  Mr.  Scott  and  Waddell  were 
out  at  lunch.  The  messengers  were  not  inside  of  the  rail.  He  might  come  up 
to  the  rail  and  speak  to  me. 

Question.  What  time  of  the  day  could  you  take  the  bonds  from  the  desk,  so 
as  not  to  be  seen  by  those  in  the  room  ? 

Answer.  1  could  take  them  almost  any  time  of  the  day.  We  had  to  have  a 
great  many  bonds  in  and  out  all  the  time,  getting  them  ready  to  cancel.  Some 
parties  would  be  coming  in  to  have  bonds  cancelled,  or  Mr.  Barney  would  want 
to  see  some  bonds,  or  Mr.  Denison  and  Ave  had  to  keep  getting  them  in  and  out 
all  the  time.  Sometimes  we  would  have  five  or  six  stocks  down — stocks  of  a 
hundred  each. 

Question.  Do  you  recollect  how  many  bonds  were  given  up  by  you  to  Smith  ? 
Answer.  I  think  six  or  seven — not  to  exceed  eight. 

Question.  Were  there  any  other  parties  besides  Smith  who  approached  you 
and  negotiated  for  the  abstraction  of  bonds  ? 

Answer.  I  think  Mr.  Boyd  did,  but  I  am  not  positive  as  to  that.  1  told  Mr. 
Barney  that  I  thought  1  abstracted  bonds  for  Benjamin  &  Co.,  but  I  have  sincq 
heard  that  they  have  looked  the  bonds  over,  but  do  not  find  any. 

Question.  Were  there  any  incidents  or  particulars  attending  the  delivery  of 
any  of  these  bonds  to  Smith,  that  you  now  recollect,  that  made  one  transaction 
different  from  another  ? 

Answer.  They  were  all  about  the  same.  He  used  to  come  into  the  office  and 
ask  me  if  I  had  that  memorandum  made  for  him.  He  meant,  if  I  could  get 
that  bond  for  him. 

Question.  Were  these  bonds  given  up  immediately,  in  any  instance,  before 
the  ship  had  left  port  ? 
Answer.  No,  sir. 

Question.  They  could  not  have  been  given  up  until  the  day  after  they  were 
executed  ? 

Answer.  No,  sir. 

H.  Rep.  Com.  Ill  15 


226 


NEW   YORK  CUSTOM  HOUSE. 


Question.  You  have  no  remembrance  of  any  bond  being  given  up  until  some 
days  after  its  execution  ? 
Answer.  No,  sir. 

Question.  Did  you  ever  have  anything  to  do  with  the  cancellation  of  these 
bonds  ? 

Answer.  Yes,  sir.  I  did,  along  in  1S62,  when  they  begin  to  be  a  little  afraid 
of  the  certificates  not  being  genuine.  I  did  not  after  that.  If  you  will  look 
over  the  bonds  you  will  see  some  of  them  are  cancelled. 

Question.  You  simply  cancelled  them  and  filed  them  away  ? 

Answer.  Yes,  sir. 

Question.  Who  gave  directions  for  cancellation  1 

Answer  No  one  gave  directions.  The  clerks  always  used  to  cancel — Mr. 
Waddell,  Mr.  Palmer,  and  Mr.  Scott. 

Question.  Who  passed  up  the  cancellation  certificates  to  see  if  they  were  sat- 
isfactory 1 

Answer.  Mr.  Waddell,  chief  clerk,  or  father  did.  Father  was  away  six 
weeks,  a  year  ago  last  spring,  and  then  Mr.  Waddell  passed  them,  and  at  one 
time  Mr.  Palmer  did.  W'e  knew  exactly  what  kind  of  certificates  were  required, 
and  if  they  did  not  produce  them  we  would  not  cancel  them. 

By  Mr.  Le  Blond  : 

Question.  Whose  bonds  were  those  that  were  abstracted  ? 
Answer.  Middleton  &  Co.'s,  Exchange  Place. 
Question.  How  many  bonds  of  Middleton  &  Co.  were  abstracted? 
Answer.  Six  or  seven,  or  eight — not  to  exceed  eight. 

Question.  Were  there  any  other  bonds  save  and  except  the  Middleton  bonds 
that  were  abstracted  by  you  ? 
Answer.  No,  sir. 

Question.  Have  you  any  knowledge,  either  directly  or  indirectly,  of  any  other 
bonds,  aside  from  these  Middleton  bonds,  that  have  been  abstracted  ? 
Answer.  No,  sir. 

Question.  In  what  way  was  this  subject  of  abstracting  the  bonds  commenced*, 
and  by  whom  ? 

Answer.  It  was  commenced  by  Henry  Clay  Smith.  I  do  not  remember  now 
how  it  was  commenced. 

Question.  Do  you  remember  where  the  subject  was  first  suggested  to  you  ? 

Answer.  It  was  either  in  the  office  or  in  the  water-closet,  or  in  the  building. 

Question.  Had  you  been  on  very  intimate  terms  with  Smith  ? 

Answer.  No,  sir.  No  more  than  1  was  with  other  brokers  there.  I  saw  him 
every  day,  and  of  course  I  knew  him. 

Question.    You  barely  knew  him  as  a  business  man  ? 

Answer.  Yes,  sir.    1  never  knew  him  before  I  went  into  the  custom-house. 
Question.  Had  you  at  any  time  previous  to  this  had  any  conversation  with 
•  Smith  upon  any  subject  other  than  upon  mere  business  transactions  pertaining 
to  the  office? 
Answer.  No,  sir. 

Question.  What  was  the  language  used  by  Smith  when  he  made  this  sug- 
gestion to  you  ?  Did  he  commence  talking  in  a  roundabout  way,  or  did  he 
directly  propose  to  you  that  upon  your  surrendering  up  these  bonds  he  would 
pay  this  money  which  you  have  already  designated  ? 

Answer.  Yes,  sir.  1  think  he  mentioned  once  without  its  being  in  a  round- 
about way,  but  I  do  not  remember  how  it  was. 

Question.  What  arguments  did  he  make  use  of  to  induce  you  to  do  this  ? 

Answer.  I  don't  know.  I  did  not  want  to  do  it,  and  \\v  kept  at  me  a  good 
while,  every  time  he  saw  me. 


NEW  YORK  CUSTOM  HOUSE. 


227 


Question.  Then,  as  I  understand,  you  refused  to  grant  bis  request  upon  the 
lirst  interview '( 

Answer.  Yes,  sir.    I  refused  a  good  many  times. 
Question.  When  did  he  next  see  you  ? 
Answer.  lie  used  to  see  me  every  day. 

Question.  Would  he  suggest  this  matter  to  you  upon  every  occasion  when  he 
met  you? 

Answer.  Y~es,  sir.  He  would  hint  at  it  in  some  way  that  I  would  understand, 
lie  would  ask  me  if  that  memorandum  was  ready — meaning  by  that,  the  bond — 
and  I  would  tell  him  no  ;  and  then  he  would  say,  When  can  I  have  it  ?  I  would 
say,  You  cannot  have  it  at  all ;  and  then  he  would  ask  me  just  as  I  was  going 
home. 

Question.  Why  did  you  understand  that  he  meant  these  bonds,  when  he  spoke 
of  a  memorandum  ? 

Answer.  I  could  tell  by  his  looks  more  than  anything  else. 

Question.  How  long  was  it  from  the  first  time  that  he  suggested  this  matter 
to  you,  before  you  finally  consented  to  deliver  up  these  bonds  ? 

Answer.  It  was  a  good  while;  I  do  not  remember  how  long. 

Question.  About  how  many  days  or  weeks'? 

Answer.  It  was  some  weeks.  He  did  not  keep  talking  to  me  all  the  time, 
but  it  was  from  time  to  time. 

Question.  How  long  had  these  bonds  been  given  before  you  gave  them  up  ? 

Answer.  I  do  not  know  how  long  it  was.  Some  of  them  might  have  been 
on  file  three  or  four  months.  I  do  not  remember  when  they  first  commenced 
to  give  bonds. 

Question.  What  was  the  shortest  time  from  the  giving  of  the  bond  until  it 
was  surrendered  up  ? 

Answer.  About  a  week  was  the  shortest  time  on  any  one  of  these  bonds. 

Question.  With  others,  you  say  it  may  have  been  two  or  three  months  before 
they  were  given  up  ? 

Answer.  Yes,  sir. 

Question.  When  Smith  came  to  you  and  asked  you  about  these  bonds,  did 
he,  after  coming  into  the  room  where  you  were,  go  into  your  father's  room  1 

Answer.  No,  sir,  I  think  not,  unless  he  had  business  with  him. 

Question.' Do  you  recollect  his  going  to  your  father's  desk  at  any  time  for 
the  purpose  of  getting  these  bonds  1 

Answer.  No,  sir.  He  used  often  to  come  in  with  parties  for  whom  he  was 
getting  bonds  made  out,  to  assist  them  there. 

Question.  Did  he,  at  any  time  when  he  came  there  and  spoke  to  you  about 
these  bonds,  have  other  bonds  that  he  was  about  to  negotiate  I 

Answer.  Yes,  sir. 

Question.  Did  he  bring  in  securities  to  go  upon  other  bonds  at  the  same  time 
he  was  negotiating  with  you  about  these  bonds  1 

Answer.  I  think  he  did.  He  would  bring  up,  sometimes,  t<vo  or  three  par- 
ties, for  different  bonds,  at  the  same  time. 

Question.  Were  you  acquainted  with  the  security  upon  these  Middleton  bonds  ? 

Answer.  1  only  knew  Mr.  Conklin  by  sight.  1  was  not  acquainted  with 
either  of  them. 

Question.  At  any  time  that  Smith  came  to  see  you  about  getting  these  bonds, 
did  you  see  Mr.  Conklin  there  I 

Answer.  I  do  not  remember.  I  never  spoke*  to  him  unless  it  was  about 
business. 

Question.  How  long,  generally,  did  your  father  keep  the  bonds  that  he  would 
take  during  the  day,  at  his  own  desk,  before  they  were  delivered  up  ! 

Answer.  He  would  always  keep  them  over  night,  and  before  they  were  re- 
corded, in  the  morning,  he  would  look  them  over  to  see  if  they  were  correct — 


228  NEW   YORK  CUSTOM  HOUSE. 

to  see  if  the  acknowledgments  worn  signed  by  him  and  tlio  witnesses  were  all 
right. 

Question.  When  did  you  first  communicate  the  fact  of  bonds  being  abstracted 

to  any  one  ? 

Answer.  I  first  communicated  it  to  my  cousin,  Mr.  D.  0.  EatoTi,  a  lawyer,  at 
7  Pine  street. 

Question.  How  long  was  this  after  the  abstraction  of  the  first  bonds  ? 
Answer.  I  think  it  was  about  a  month  or  six  weeks. 

Question  How  many  had  been  abstracted  at  the  time  you  communicated  this 
fact? 

Answer.  One. 

Question.  What  was  the  consideration  you  told  him  had  been  paid  for  that  one? 
Answer.  I  think  it  was  for  twenty  dollars. 

Question.  How  long  after  you  communicated  that  fact  before  any  other  bond 
was  surrendered  up  ? 

Answer.  That  1  don't  remember. 

Question.  About  how  long  ? 

Answer.  It  might  have  been  a  month. 

Question.  Then  how  long  after  the  giving  up  of  the  next  bond  before  another 
one  was  given  up  ? 

Answer.  I  don't  know.  It  might  have  been  the  same  length  of  time.  I 
don't  remember. 

Question.  Was  there  more  than  one  bond  given  up  at  a  time  ? 
Answer.  No,  sir. 

Question.  What  did  your  cousin  say  to  you  at  the  time  you  told  him  about  this  ? 

Answer.  He  told  me  I  ought  not  to  have  done  it.  1  told  him  that  Smith 
persuaded  me  into  it,  and  I  told  him  that  if  he  would  not  say  anything  about  it 
to  father,  I  would  not  do  it  again. 

Question.  Did  you  tell  him  what  amount  of  money  you  got  for  surrendering 
it  up  1 

Answer.  Yes,  sir. 

Question.  Did  you  tell  him  the  reason  why  you  surrendered  it  up  ? 
Answer.  I  told  him  that  he  coaxed  me  into  it. 

Question.  Did  you  tell  him  the  arguments  made  use  of  by  Smith  to  induce 
you  to  do  this  ? 

Answer.  I  think  I  told  him  that  he  was  trying  to  persuade  me  a  good  while. 
Question.  Did  you  afterwards  tell  him  again  that  you  had  given  up  other 
bonds? 

Answer.  I  am  not  certain  whether  I  did  or  did  not. 
Question.  Did  you  tell  anybody  else  aside  from  him  ? 
Answer.  No,  sir. 

Question.  Are  you  sure  that  you  did  not  tell  him  or  soma  others,  before  this 
thing  got  out  and  made  its  appearance  in  the  papers,  that  you  had  surrendered 
up  other  bonds  ? 

Answer.  No,  sir.    I  think  I  did  not. 

Question.  Did  you  and  Smith  have  any  controversy  as  to  the  amount  you 
should  be  paid  for  the  abstraction  of  the  bonds  ? 

Answer.  He  told  me  that  he  would  give  $25  if  he  could;  if  he  could  not,  he 
would  give  $20.    I  understand  that  he  got  500  or  600  dollars  for  a  bond. 

Question.  Did  you  ask  him  to  give  you  a  greater  amount  than  $25  ? 

Answer.  Yes,  sir.    I  told  trim  that  1  thought  I  was  selling  myself  too  cheap. 

Question.  Was  there  a  bond  by  Midcileton  &  Co.,  amounting  to  some  $34,000, 
which  you  gave  up  to  Smith  ? 

Answer.  No,  sir. 

Question.  Do  you  recollect  Middleton  &  Co.  executing  a  bond  to  that  amount  ? 


NEW  YORK  CUSTOM  HOUSE. 


220 


Answer.  No,  sir;  it  might  have  been  done  last  July.  I  was  sick  throe 
weeks. 

Question.  Was  there  any  one  of  these  bonds  surrendered  up  within  a  week 
after  it  was  exceuted  and  delivered  ? 

Answer.  I  think  there  was  one  delivered  about  a  week  after  it  was  executed. 
Question.  Was  there  any  bond  abstracted  before  the  vessel  left  the  port  ? 
Answer.  Not  by  me. 

Question.  Have  you  at  any  time  since  this  thing  has  become  public  had  any 
conversation  with  Smith  ? 

Answer.  Yes,  sir ;  I  did  in  his  office  one  day.  I  asked  him  if  he  could  let 
me  have  some  money.  I  told  him  that  he  had  made  a  good  deal  of  money  out 
of  it,  and  I  did  not  like  to  stay  here  because  everybody  was  talking  about  it, 
and  I  wanted  to  go  off.  I  told  him  that  he  had  made  enough  out  of  it  to  help 
me  off.  I  told  Mr.  Barney  that  I  would  like  to  go,  and  he  said  I  could  go 
away  for  some  time  if  I  would  come  back. 

Question.  What  did  Smith  say  to  you  ? 

Answer.  I  do  not  recollect  what  his  answer  was. 

Question.  Did  he  refuse  to  give  you  the  money,  or  did  he  give  it  to  you  ? 
Answer.  He  did  not  give  it  to  me. 

Question.  Have  you  been  examined  by  Mr.  Jordan  or  Mr.  Bailey  in  refer- 
ence to  this  matter  ? 

Answer.  No,  sir ;  I  was  before  Mr.  Barney,  at  his  house. 
Question.  Not  to  give  testimony  ? 

Answer.  No,  sir;  that  written  statement  of  mine  is  what  I  told  Mr.  Barney. 
Question.  You  were  not  tinder  oath  at  any  time? 

Answer.  No,  sir;  that  I  gave  when  everything  was  fresh  in  my  mind. 
Question.  When  did  you  first  have  a  conversation  with  your  father  in  regard 
to  this  matter  ? 

Answer.  The  first  time  he  ever  spoke  to  me  about  it  was  the  evening  of  the 
28th  of  October,  1863,  when  it  first  came  to  light. 
Question.  What  did  you  say  to  him  ? 

Answer.  I  think  I  did  not  say  much  of  anything  to  him ;  he  was  talking  to 
me. 

Question.  Did  you  acknowledge  this  matter  to  him,  or  did  you  deny  it? 

Answer.  I  don't  know  which  I  did  ;  I  don't  think  I  acknowledged  it  at  first ; 
I  think  afterwards  I  did  ;  I  don't  know  that  I  told  him  anything  about  it  at 
first. 

Question.  Did  any  other  parties  offer  to  give  you  money  to  surrender  up  their 
bonds  ? 

Answer.  No  one  but  this  man  Smith  ;  I  thought  Mr.  Boyd  did. 
Question.  Was  he  a  broker  ? 

Answer.  Yes,  sir;  he  was  a  broker  for  Benjamin.  I  said  that  I  thought  that 
I  had  given  up  bonds  for  Benjamin,  but  since  that  I  have  heard  that  they  have 
examined  all  the  bonds,  and  do  not  find  that  to  be  the  case ;  I  am  not  certain 
about  it ;  I  told  Mr.  Barney  that  I  thought  I  had,  and  he  had  the  bonds 
examined. 

Question.  Did  any  persons  other  than  brokers  ever  suggest  that  such  a  thing 
might  be  done  ? 
Answer.  No,  sir. 

Question.  Have  you  had  any  more  than  the  one  conversation  that  you  speak 
of,  since  this  matter  was  known,  with  Smith? 
Answer.  No,  sir. 

Question.  Did  you  ever  receive  any  money  for  the  transaction  of  business  at 
the  custom-house  in  any  other  way  than  except  your  salary  and  this  abstraction 
of  bonds  ? 

Answer.  I  used  to  make  certified  copies  of  bonds  out  of  office  hours,  and  as 


230 


NEW  YORK  CUSTOM  BOUSE. 


a  general  thing  I  used  to  charge  fifty  cents  or  a  dollar;  it  was  allowed  as  extra 
work.  For  instance,  the  United  States  consuls  and  the  provost  marshals  at 
different  places  would  not  cancel  the  bonds  unless  they  had  a  certified  copy,  and 
we  got  overrun  with  them  at  one  time,  and  some  said  we  had  better  charge 
something,  and  they  would  not  overrun  us.  I  would  make  certified  copies  of 
the  bonds  out  of  office  hours.  Mr.  Scott  used  to  do  that,  Mr.  Waddell,  and 
my  father. 

Question.  Are  you  certain  that  you  never  delivered  up  not  to  exceed  eight 
bonds  to  Smith  or  anybody  else  ?  1 

Answer.  Yes,  sir ;  I  am  positive  of  that. 

Question.  What  was  the  amount  of  money  that  Smith  paid  you  in  the 
aggregate  ? 

Answer.  The  amount  he  paid  me  never  exceeded  $25  for  each  bond ;  I  do 
not  think  I  took  more  than  seven  ;  it  might  have  been  eight;  I  know  it.  does 
not  exceed  eight ;  he  paid  me  from  820  to  $25  each. 

By  the  chairman  : 

Question.  Do  you  recollect  whether  Eneas  ever  got  one  of  these  bonds? 

Answer.  Not  from  me. 

Question.  Who  is  Eneas's  broker? 

Answer.  I  think  it  is  Godwin. 

Question.  Did  Eneas  have  a  brother  that  shipped  some  goods  ? 
Answer.  I  don't  know  his  brother. 

Question.  Did  you  ever  have  anything  to  do  with  Smalley  ? 
Answer.  Yes,  sir;  he  was  in  the  office  there  during  the  spring  of  1SG2,  during 
father's  absence. 

Question.  Did  he  have  anything  to  do  with  this  bond  matter  in  any  way  that 
you  know  of? 

Answer.  He  used  to  be  in  there;  when  father  was  away  in  Washington  he 
used  to  be  there  to  help  Palmer  and  Mr.  Waddell.  Mr.  Waddell  was  chief  clerk. 
At  one  time  Palmer  was  assistant  chief  clerk,  and  Mr.  Smalley  was  notary, 
and  Mr.  Palmer  was  not  at  that  time,  and  he  used  to  have  Mr.  Smalley  there  to 
swear  parties,  instead  of  'going  out  and  getting  somebody  else. 

Question.  Did  you  know  Palmer  well  ? 

Answer.  I  was  never  very  intimate  with  him  ;  1  knew  him  as  one  of  the 
clerks. 

Question.  Did  he  ever  have  any  knowledge  of  the  abstraction  of  these  bonds? 
Answer.  No,  sir. 

Question.  Were  any  of  these  bonds  ever  cancelled,  to  your  knowledge,  by 
yourself,  without  the  production  of  the  proper  certificate  ? 

Answer.  No,  sir  ;  I  never  cancelled  tliem  without  a  certificate. 

Question.  Do  you  recollect  of  any  instance  that  ever  occurred  of  dating  the 
cancellation  back  ? 

Answer.  No,  sir. 

Question.  Or  in  the  giving  of  bonds,  either? 

Answer.  No,  sir;  it  would  be  detected  right  oft",  when  we  were  registering 
them. 

Question.  Do  you  know  of  any  other  improprieties  or  improper  practices  among 
those  now  in  the  custom-house  employ,  that  the  committee  ought  to  know? 
Answer.  I  do  not. 


N E W   YORK  CUSTOM  HOUSE. 


231 


Testimony  of  Samvel  Myers. 

New  Fork,  April  18,  1SG*. 

Samuel  Myers  sworn. 

By  the  chairman  : 

Question.  Do  you  reside  in  this  city? 
Answer.  Yes,  sir. 

Question.  How  long  have  you  resided  here  ? 
Answer.  About  fourteen  years. 
Question.  What  is  your  occupation  here  ? 
Answer.  I  am  a  commission  merchant. 
Question.  Buying  and  selling  and  shipping  goods? 
Answer.  Yes,  sir ;  shipping  very  little. 
Question.  You  execute  orders  for  goods  ? 
Answer.  I  have  done  so. 

Question.  To  what  part  of  the  country  have  you  been  in  tbe  habit  of  doing 
this  business  ? 

Answer.  I  have  been  shipping  goods  to  Nassau. 
Question.  How  long  have  you  been  in  that  trade  .; 

Answer.  For  the  last  nine  months  ;  it  may  be  a  little  longer,  but  not  more 
than  that. 

Question.  Did  you  not  have  anything  to  do  with  it  before  ? 
Answer.  No,  sir.    I  was  not  in  the  city;  I  was  at  Saratoga  springs  ;  I  came 
back  here  from  Saratoga  springs  last  May,  and  went  to  live  at  Staten  Island. 
Question.  Do  you  know  Mr.  Isaac  P.  Hussey? 
Answer.  Yes,  sir. 

Question.  Where  did  you  meet  him  first? 
Answer.  At  Mr.  Turner's,  Park  Place. 
Question.  When  was  that? 

Answer.  It  was  last  summer,  or  in  the  fall  of  the  year. 

Question.  Do  you  recollect  who  was  present  at  the  same  time  at  Mr.  Turner's? 
Answer.  There  was  Mr.  Turner,  Mr.  Hussey,  and  another  gentleman  whom 
I  did  not  know. 

Question.  Did  you  afterwards  know  who  it  was  ? 

Answer.  I  did  not:  I  only  knew  it  was  a  person  from  Richmond,  as  1  un- 
derstood. 

Question.  Was  there  any  conversation  at  that  time  with  Mr.  Hussey  about 
transacting  business  with  the  Confederate  States  ? 
Answer.  None  whatever. 
Question.  About  shipping  goods? 
Answer.  None  whatever. 

Question.  You  afterwards  met  Mr.  Hussey  several  times  on  the  boat  betwixt 
Staten  Island  and  New  York  ? 
Answer.  Yes,  sir. 

Question.  Did  you  have  any  conversation  with  him  at  these  times  with  refer- 
ence to  matters  of  this  kind? 

Answer.  I  had  a  conversation  with  him  relative  to  these  matters;  he  explained 
to  me  that  he  could  get  bonds  cancelled  at  the  custom-house,  but  I  had  no  con- 
versation with  him  with  regard  to  shipping. 

Question.  How  did  he  say  he  could  get  them  cancelled  ? 

Answer.  Through  a  friend  of  his  who  was  in  the  custom-house,  and  by  pay- 
ing something  like  5  per  cent,  he  could  get  these  bands  cancelled. 
Question,  flow  came  this  subject  to  be  introduced  between  you  ? 
Answer.  He  saw  me  at  Mr.  Turner's,  and  he  met  me  afterwards. 


232 


NEW  YORK  CUSTOM  HOUSE. 


Question.  Did  you  have  any  conversation  at  Mr.  Turner's  about  these  bonds? 

Answer.  No,  Bir;  having  seen  me  at  Mr.  Turner's,  he  came  and  sat  down  by 
my  side  in  the  boat,  and  spoke  to  me  about  the  confederacy  ;  he  was  an  entire 
si  ranger  to  me  then. 

Question.  Was  Mr.  Turner  engaged  in  shipping  goods  there? 

Answer.  I  do  not  know  whether  he  was  or  was  not.  Mr.  Hussey  said  that  he 
had  a  friend  in  the  custom-house  through  a\  horn  he  could  get  his  bonds  can- 
celled ;  he  said  that  he  would  introduce  me  to  him  ;  he  first  introduced  me  to  a 
person  who  kept  an  office  in  New  street,  Mr.  Conklin. 

Question.  And  you  learned  from  him  that  bonds  could  be  cancelled  ? 

Answer.  Yes,  sir;  Mr.  Hussey  said  he  would  introduce  me  to  another  party. 

Question.  Did  he  do  so? 

Answer.  Yes,  sir;  to  Mr.  Hanscom.    The  first  time  I  was  introduced  to  Mr. 
Hanscom,  he  said  he  could  get  the  bonds  cancelled. 
Question.  About  what  time  was  this  ? 

Answer.  I  think  it  was  near  the  fall ;  it  was  in  the  summer.  He  told  me 
that  he  could  get  these  bonds  cancelled ;  it  was  not  for  myself,  but  it  was  for 
Mr.  Eneas,  who  wanted  bonds  cancelled.  He  asked  me  to  ask  Mr.  Eneas 
what  he  would  pay  to  get  his  bonds  cancelled.  On  account  of  the  smallness  of 
the  sum  Mr.  Hanscom  said  that  he  thought  it  was  not  worlh  while,  as  the 
amount  of  the  bonds  was  only  1,300  or  1,400  dollars. 

Question.  Did  the  negotiation  proceed  any  further? 

Answer.  Not  upon  that  point. 

Question.  What  other  negotiations  did  you  have? 

Answer.  Mr.  Hussey  met  me  again  on  the  boat,  and  told  me  that  Mr.  Hans- 
com would  like  to  see  me  again.  Mr.  Hanscom  made  a  proposition  to  me  at 
the  office  of  Mr.  Conklin,  in  New  street,  to  get  two  or  three  parties  to  charter  a 
vessel,  for  whom  I  would  ship,  and  after  they  had  chartered  it  they  could  get  the 
bond  cancelled,  and  when  the  vessel  was  on  her  way  down  the  harbor  they 
could  take  and  confiscate  it,  and  if  so  they  would  give  me  in  proportion  what  I 
was  entitled  to.  I  objected  to  it,  and  said  that  I  would  not  go  into  business  of 
that  kind,  and  for  two  or  three  weeks  after  I  heard  no  more  of  it  until  I 
received  a  letter  from  Mr.  Denison  requesting  me  to  call  upon  him. 

Question.  Had  you  ever  seen  him  before  ? 

Answer.  Never.  In  met,  I  did  not  answer  his  first  letter.  He  sent  after- 
wards for  me  to  wait  upon  him.  I  immediately  went  with  a  Mr.  Lewis  and 
I  saw  Mr.  Denison.  Mr.  Denison  asked  me  if  1  had  been  in  Nassau,  and  knew 
several  parties  there.  I  told  him  that  I  had  been  there  once.  The  first  obser- 
vation he  made  to  me  was,  "  I  have  sent  for  you  ;  you  did  not  reply  to  my  let- 
ter." I  replied,  "  I  did  not  know  you  ;  I  never  saw  you  before."  He  said,  "I 
have  the  power  of  sending  you  to  Fort  Lafayette,  and  unless  you  give  me  suf- 
ficient information  of  what  I  want  I  will  send  you  there."  There  were  two 
persons  in  the  room.  After  they  had  left  the  room  he  asked  me,  "  Do  you  know 
parties  at  Nassau?"  I  told  him  that  I  knew  a  great  many  by  reputation,  and 
many  of  them  are  here.  He  said,  "  If  you  can  get  the  information  I  want,  you 
will  be  able  to  make  a  large  amount  of  money,  for  which  you  will  have  your 
share."  I  told  Mr.  Denison  that  I  had  heard  that  before.  I  refused  to  enter- 
tain any  application.  He  said,  "  My  office  is  open  for  any  information  you  can 
give,  and  I  would  like  to  have  it."  I  did  not  see  Mr.  Denison  for  sonic  time 
after  that.  When  the  Corsica  came  from  Nassau  she  was  boarded  by  the 
officers,  and  there  was  a  large  amount  of  exchange  taken  from  her,  among 
which  was  some  exchange  belonging  to  Mr.  Woolf,  amounting  to  4,000  pounds. 
Mr.  Woolf  is  my  son-in-law.  I  called  upon  Mr.  Denison  and  requested  him  to 
give  up  that  exchange  belonging  to  my  son-in-law,  and  also  some  private  letters. 
He  hesitated  at  first,  and  told  me  to  call  next  day.  He  gave  them  up  to  me, 
and  I  gave  him  a  receipt  for  them.    Previous  to  that  he  asked  me  with  regard 


NEW  YORK  CUSTOM  BOUSE. 


233 


to  Joseph  Eneas,  whose  trial  was  pending  before  Judge  Betts.  He  asked  me 
to  negotiate  with  Eneas;  that  if  he  would  pay  825,000  they  would  let  the 
suit  go. 

Question.  What  was  the  suit  for? 

Answer.  For  the  confiscation  of  the  Jose — the  steamer  that  was  taken  from 
Eneas.  I  called  upon  Mr.  Eneas,  (lie  was  in  the  city,)  and  I  told  him  exactly 
what  Mr.  Denison  said.  Eneas  said,  "I  will  not  give  my  consent;  my  papers 
are  before  Lord  Lyons,  and  I  am  satisfied  that  I  am  innocent  in  this  case;  you 
may  give  my  compliments  to  Mr.  Denison,  and  tell  him  I  will  stand  this  suit." 
1  went  back  and  named  to  Mr.  Denison  what  he  said.  Mr.  Denison  then  said  to 
Mr.  Hanscom,  (Mr.  Hanscom  was  then  there,)  "  Hanscom,  do  you  think  he  will 
give  $5,000  or  $10,000;"  Hanscom  replied,  "  I  do  not  know ;"  and  then  he  said 
to  me,  "  you  ask  him."  *I  went  again  to  Mr.  Eneas,  and  I  asked  him  if  he  would 
give  $5,000  or  $10,000,  and  Eneas  said,  "I  will  not  give  a  cent,"  and  I  brought 
that  message  back.  Shortly  after  this  I  applied  to  Mr.  Denison  for  the  purpose  of 
of  getting  the  €4,000  of  exchange  belonging  to  Mr.  Woolf,  together  with  his  paper-. 
My  son-in-law,  Mr.  Woolf,  was,  at  the  time,  on  the  outside  of  the  naval  office  wait- 
ing forme.  When  I  asked  Mr.  Denison,  he  said  "No,  that  he  would  not  give 
them  up  ;"  and  he  asked  me  if  there  was  anything  he  could  do  for  me.  I  said, 
I  wish  you  would  do  this  in  particular;  to  which  he  replied,  "I  don't  know 
why  I  should  give  yon  this  ;  what  is  the  reason  you  have  asked  me  V*  I  told 
him  that  Mr.  Woolf  was  outside  of  the  door,  and  I  opened  the  door  and  Mr.  Woolf 
came  in,  and  I  introduced  him  to  Mr.  Denison  as  my  son-in-law,  and  I  said  to 
him  that  he  had  no  connexion  with  the  other  Woolfs  with  whom  Benjamin  was 
connected.  He  examined  Mr.  Wroolf'very  closely,  and  he  told  me  to  call  on  him 
the  next  morning.  I  called  upon  him  the  next  morning,  and  I  had  about  half 
an  hour's  conversation  with  him.  He  said,  "I  did  not  know  that  Woolf  was 
your  son-in-law;  if  you  will  give  me  a  receipt,  I  will  give  you  up  the  c£'4,000 
exchange  and  letters,  with  the  proviso  that  you  return  me  this  one  letter  back." 
It  was  a  letter  addressed  to  Mr.  Woolf.  He  gave  me  that  letter,  which  I  took 
to  Mr.  Woolf,  and  in  the  afternoon  I  returned  him  that  letter  and  he  gave  me 
up  the  4,000  pounds  exchange  and  some  private  letters  which  had  been  opened, 
and  I  left  him. 

Question.  Have  you  had  any  conversation  with  Mr.  Hanscom  or  Mr.  Denison 
since  1 

Answer.  No,  sir ;  I  have  seen  them,  but  I  have  had  no  conversation  with 
them  upon  any  subject. 

Question.  Did  you  ever  make  an  affidavit  about  these  matters  > 
Answer.  Yes,  sir ;  for  my  son-in-law.  It  was  given  into  the  hands  of  the 
British  consul,  not  to  be  used  on  any  occasion  unless  it  was  required.  I  never 
intended  to  take  any  step  in  the  matter,  because  I  had  no  interest  in  it,  directly 
or  indirectly.  Mr.  Woolf,  previous  to  leaving  for  Europe,  mentioned  this  cir- 
cumstance to  Benjamin,  and  Mr.  Campbell,  his  lawyer,  called  upon  me,  stating 
that  that  affidavit  had  been  read  by  Mr.  Benjamin.  This  affidavit  was  in  the 
hands  of  the  British  consul,  and  I  believe  Mr.  Barney  railed  upon  the  British 
consul  to  know  the  contents  of  it.  Mr.  Woolf  was  at  the  "Lafarge  Hotel," 
and  this  affidavit  was  sent  back  to  Mr.  Woolf,  and,  I  believe,  it  was  there  shown 
to  Mr.  Benjamin  or  Mr.  Woolf,  or  some  one  connected  with  Benjamin  and  the 
Woolf  party. 

Question.  At  whose  request  did  you  make  that  affidavit  ? 

Answer.  The  first  affidavit  was  at  the  request  of  my  son-in-law,  Woolf. 

Question.  At  whose  request  did  you  make  the  second  ? 

Answer.  At  the  request  of  Mr.  Campbell,  Benjamin's  counsel.  He  came  t<> 
me  and  asked  me  if  I  would  have  any  objection  to  making  an  affidavit.  1  want 
to  observe  one  thing:  that  during  the  time  this  steamer  the  Corsica)  and  all 
these  goods  were  seized,  Mr.  Hanscom  and  Mr.  Denison  wanted  me  \<<  go  to  sev- 


234 


NEW   YORK   CUSTOM  HOUSE. 


eral  of  the  parties.  I  called  upon  Aaron  and  John  Woolf.  I  had  never  known 
them  before.  I  called  upon  them  to  see  how  much  they  would  give  to  ^ct  their 
property  back. 

Question.  Who  directed  you  to  do  that  ? 

Answer.  Mr.  Denison  and  Mr.  Hanscom  directed  me  to  go  and  see  how  much 
they  would  give  to  get  their  property  back,  amounting  to  .some  $25,000. 
Question.  Where  were  you  when  they  requested  this  ? 
Answer.  In  the  office  of  Mr.  Denison  himself. 
Question.  Who  was  present? 

Answer.  No  one  lmt  Mr.  Denison  himself.  Mr.  Denison  afterwards  went  out, 
and  then  Mr  Hanscom  came  in.  At  one  time  Mr.  Hussey  was  present,  but  not 
upon  this  occasion. 

Question.  Did  you  go  to  the  parties?  1 

Answer.  Yes,  sir.  It  was  the  first  time  I  ever  approached  Mr.  Woolf.  1  did 
not  know  anything  about  Benjamin.  I  saw  Mr.  Woolf;  lie  said  that  he  would 
not  give  anything.  I  said  to  him  that  I  was  deputed  to  ask  him  what  they 
would  give  to  get  the  property  back,  and  I  would  take  the  answer  back.  He 
said,  "I  will  not  give  one  cent.  I  am  entitled  to  it.  I  have  left  my  papers  in 
the  hands  of  Lord  Lyons." 

Question.  Did  you  ever  go  to  any  other  persons  to  negotiate  about  goods  being 
given  up  ? 

Answer.  No,  sir ;  only  Mr.  Eneas  and  Mr.  Woolf. 

Question.  Do  you  know  yourself  of  any  goods  being  given  up  at  that  or  any 
other  time  for  which  money  was  paid? 

Answer.  No,  sir,  not  where  there  was  any  money  paid. 
Questfon.  Or  promised  to  be  paid  ? 
Answer.  No,  sir. 

Question.  Was  there  anything  secret  in  this  negotiation  I  Did  they  ask  you 
to  keep  still  about  it  ? 

Answer.  Mr.  Denison  told  me  to  be  secret,  and  Mr.  Hanscom  too. 

Question.  Did  you  have  any  other  transactions  with  Mr.  Denison  or  Mr. 
Hanscom  ? 

Answer.  I  had,  several  times.  I  have  been  up  there  according  to  their  own 
request.  They  asked  me  one  time  with  regard  to  information  about  Benjamin, 
Rahming,  and  many  others.  I  told  them  that  I  was  not  acquainted  with  the 
parties,  but  with  regard  to  Eneas,  I  knew  him  ;  that  I  never  had  any  business 
with  him,  but  I  knew  him. 

Question.  Did  you  ever  have  any  other  transactions  with  them  other  than 
those  you  have  specified  1 

Answer.  Nothing  more  than  I  have  specified  in  the  affidavit  I  made.  Since 
that  time  I  have  never  been  near  Mr.  Hanscom  or  Mr.  Denison. 

Question.  Did  you  have  a  quarrel  with  them  at  the  time  ? 

Answer.  Mr.  Hanscom  fooled  me  eight  or  nine  days  about  delivering  up  the 
papers.  He  would  say,  you  shall  have  them  to-morrow,  and  so  on.  1  told  Mr. 
Hanscom  that  he  was  behaving  very  badly,  and  he  ought  to  say  whether  he 
would  give  them  up  or  not. 

Question.  Have  there  been  sharp  words  between  you  and  Hanscom  or  Deni- 
son 1 

Answer.  No,  sir. 

Question.  Have  you  any  reason  to  suppose  that  this  offer  was  made  to  draw 
you  out,  or  do  you  suppose  that  it  was  made  in  good  faith  on  the  part  of  Mr. 
Denison  and  Hanscom  ? 

Answer.  I  believe  it  was  made  in  good  faith,  because  Mr.  Hussey  was  the 
party,  the  go-between,  as  it  were.  I  would  never  go  there  unless  Hussey  came 
and  said  Mr.  Denison  or  Mr.  Hanscom .  would  like  to  see  you.    I  believed  my- 


NEW  YORK  CUSTOM  HOUSE. 


235 


self,  when  these  propositions  wore  made  to  me,  that  they  were  intended  to  be 
carried  out  by  tliem. 

Question.  Did  Mr.  Hussey  know  what  these  propositions  vrerc  ! 

Answer.  Yes,  sir. 

Question.  How  ? 

Answer.  From  them. 

Question.  Did  lie  know  of  them  from  you  likewise  ? 

Answer.  He  told  me  of  them.  He  said  that  there  was  not  a  transaction  oc- 
curred there  unless  he  knew  it;  he  said  I  have  a  good  deal  of  power,  and  I 
can  twist  Mr.  Hanscom  around  my  fingers  in  anything  thai  emanates  from  me; 
it  always  comes  back  to  me. 

Question.  What  sort  of  a  man  is  this  Hussey  ? 

Answer.  He  is  a  tall,  stout  man — a  very  large  man.  I  had  no  idea  of  his 
character  until  one  time  when  Mr.  Turner  met  me  in  Wall  street.  I  happened 
to  be  there  at  the  time.  Mr.  Turner  came  to  me  and  says  :  Myers,  I  have  been 
speaking  to  a  man  1  ought  not  to  have  spoken  to.  You  recollect  that  man  that 
called  up  at  my  office.  I  ought  not  to  have  spoken  to  him  ;  he  is  one  of  the  worst 
men  living  in  New  York. 

Question.  What  is  his  character? 

Answer.  That  he  is  one  of  those  men  who  would  blackmail  any  man  for 
money,  and  would  become  a  witness  for  money.  Whether  it  is  so  or  not,  I 
don't  know.  I  never  had  any  desire  to  go  into  his  character.  I  pass  the  man 
and1 1  do  not  speak  to  him.  Mr.  Turner  had  some  exchange  which  came  over 
by  the  Corsica  in  the  pocket  of  Mr.  Woolf.  What  it  amounted  to  I  don't  know  ; 
but  I  know  this,  that  when  Mr.  Turner  asked  me,  I  asked  Mr.  Denison  for  it. 
Mr.  Denison  said  "  You  will  leave  Mr.  Turner  alone  to  me;  I  will  not  give  you 
that;  it  is  quite  enough  when  I  see  Mr.  Turner  myself."  I  told  Mr.  Turner, 
and  ho  said  "I  have  no  doubt  I  can  settle  that  thing;  I  know  Mr.  Denison." 
I  met  Mr.  Turner  a  little  while  after  that,  and  he  had  received  his  exchange. 
Upon  another  occasion,  when  Mr.  Hart  had  also  some  money  or  bonds  seized, 
he  applied  to  get  that  restored  to  him,  and  it  was  refused:  and  when  I  saw  Mr. 
Hart  some  time  afterwards,  he  said  he  had  got  it. 

Question.  Did  Mr.  Turner  ever  tell  you  upon  what  terms  or  conditions  he  got 
his  exchange  ? 

Answer.  He  did  not  tell  me;  he  merely  said  that  he  had  got  it;  he  did  not 
say  directly  that  he  paid  anything,  but  he  insinuated  as  much;  I  so  under- 
stood it. 

Question.  What  is  Mr.  Turner's  first  name  ? 
Answer.  David  B. 

Question.  Are  he  and  Mr.  Denison  on  good  terms  now  I 

Answer.  I  am  not  aware  whether  they  are  or  are  not.  I  saw  them  at  the 
Fifth  Avenue  Hotel  two  months  ago  speaking  together. 

By  Mr.  Le  Blond  : 

Question.  Have  you  undertaken  within  the  last  six  weeks  or  two  months  to 
make  any  shipments  to  Nassau  or  any  other  place? 

Answer.  Yes,  sir;  I  tried  once  to  make  a  shipment  to  Nassau. 
Question.  What  was  the  amount  of  the  shipment? 
Answer.  *i,000. 

Question.  What  was  the  character  of  the  goods  ? 
Answer.  Produce. 

Question.  Who  was  it  consigned  to  ? 
Answer.  To  Mr.  Tunsell. 

Question.  Did  you  succeed  in  giving  the  bond  ! 
Answer.  Yes,  sir;  but  not  in  shipping  tin;  goods. 
Question.  They  took  the  bond  ? 


236 


NEW   YOKK   CCSTOM  HOl'SK. 


Answer.  Yes,  sir. 

Question.  What  did  you  swear  to  in  the  bond  that  you  gave,  as  to  the  prop- 
erty that  you  owned  in  this  city  ? 

Answer.  I  gave  a  bond  that  I  owned  a  house  in  24th  street  and  Ninth  ave- 
nue, and  also  that  I  had  some  property  conjointly  with  my  cousin,  which  we 
purchased  in  Delaware  county.  When  they  asked  me  about  the  bonds,  I  was 
negotiating  with  a  Mr.  Myers,  a  relative  of  mine,  about  a  house.  I  had  pur- 
chased a  house  of  him  in  the  morning,  and  I  took  a  receipt  from  him  for  $0,000. 
He  was  the  party  who  was  negotiating  for  me  with  other  parties.  I  had  told 
him  that  I  would  take  it,  and  he  was  getting  the  papers  ready.  The  negotiation 
not  being  carried  through,  my  bond  could  not  be  taken.  They  told  me  that  I 
did  not  own  the  house.  1  told  them  that  I  had  made  the  purchase,  and  I  in- 
tended to  have  paid  the  balance  if  the  bonds  had  been  given. 

Question.  You  had  no  deed  for  the  property  at  that  time  1 

Answer.  No,  sir. 

Question.  You  simply  had  a  bond? 

Answer.  I  took  a  bond  from  Mr.  Myers,  and  a  receipt  that  I  had  purchased 
the  house. 

Question.  Had  you  paid  anything  on  it  ? 

Answer.  I  had  only  paid  the  sum  of  one  dollar,  in  order  to  bind  the  bargain. 
Question.  What  was  the  object  of  buying  this  property? 
Answer.  I  wanted  to  buy  the  property  for  my  family  to  Live  in. 
Question.  Why  did  you  not  take  it  afterwards  I 

Answer.  Because  they  raised  upon  the  price  of  the  property ;  it  was  more 
than  I  would  like  to  give. 

Question.  Had  you  not  agreed  before  that  time  upon  the  price  I 

Answer.  I  had  agreed  to  give  him  $6,000  for  it,  and  after  I  had  agreed  to 
give  him  that,  he  came  to  me  and  said  I  cannot  sell  that  house  for  less  than  I 
asked  first.  I  said  that  I  did  not  like  to  do  business  in  that  way,  and  I  would 
rather  decline  having  anything  to  do  with  it  at  present. 

Question.  You  did  not  take  the  property  at  all  ] 

Answer.  No,  sir. 

Question.  Have  you  had  any  conversation  with  Eneas  in  reference  to  these 
matters  ? 

Answer.  No,  sir  ;  only  what  I  have  already  explained. 

Question.  Have  you  at  any  time  been  advised  to  make  this  statement  for  the 
reason  that  it  would  benefit  Eneas  and  these  parties  ? 

Answer.  Mr.  Campbell,  when  he  called  upon  me,  said  that  if  I  would  make 
this  affidavit  which  has  been  read  already  by  Mr.  Benjamin,  it  would  be  the 
means  of  getting  their  release.  I  told  him  that  I  did  not  want  to  interfere  with 
what  did  not  concern  me.  He  said,  of  course,  I  can  make  you  swear  upon  your 
affidavit.  I  said,  upon  that,  of  course,  I  would  like  to  have  you  do  it  without 
any  trouble.    I  had  no  interest  whatever  in  the  business. 

Question.  Have  you  any  reason  to  believe  now  that  this  proposition  that  was 
made  to  you  by  Mr.  Hussey,  Mr.  Hamscom,  and  Mr.  Denison  was  with  a  view 
to  ascertain  whether  there  were  any  corruptions  in  the  bond  bureau  of  the 
custom-house  ? 

Answer.  In  one  part  of  the  conversation  I  believe  it  was. 

Question.  What  part  of  that  conversation  do  you  have  reference  to  ? 

Answer.  Mr.  Denison  told  me  at  that  time — I  believe  Mr.  Stanton  was  the 
deputy  collector — if  we  could  get  information  respecting  these  bonds  that  had 
been  cancelled  (the  Benjamin  bonds  and  those  of  other  parties)  it  would  be  of 
great  service  to  us,  as  we  want  to  find  out  where  those  bonds  have  been  can- 
celled and  by  whom. 

Question.  And,  so  far  as  that  is  concerned,  you  are  then  of  the  impression 
that  this  conversation  was  with  a  view  to  elicit  that  kind  of  information  ? 


NEW   YOKK  CUSTOM  HOUSE. 


237 


Answer.  It  was. 

Question.  The  other  part  of  the  proposition  for  money  to  be  given  by  Eneas 
and  these  parties — you  think  that  was  in  good  faith  ? 
Answer.  I  have  every  reason  to  believe  so. 
Question.  What  share  did  they  propose  to  give  you? 

Answer.  10  per  cent,  of  the  proceeds  of  whatever  property  might  be  confis- 
cated. 

Question.  Did  you  then  object  to  the  amount  that  they  proposed  to  give  ? 
Answer.  I  objected  to  it  altogether. 

Question.  You  did  not  simply  object  to  the  amount  that,  they  proposed  to 
give,  but  to  the  whole  subject-matter  I 
Answer.  I  did. 

Question.  Did  Mr.  Conklin  propose  to  take  any  part  with  them  in  these 
transactions  ? 

Answer.  At  first  he  did  ;  he  said  he  had  a  relative  in  the  custom-house  ;  lie, 
did  not  mention  his  name. 

Question.  Was  that  with  reference  to  giving  bonds'? 

Answer.  Yes,  sir;  he  said  that  he  had  a  party  in  the  custom-house  that  was 
related  to  him,  and  whether  it  was  Mr.  Hanscom  whom  he  introduced  me  to  or 
any  other  party  I  don't  know,  for  the  name  never  transpired. 

Question.  Conklin  had  nothing  to  do  with  these  other  transactions? 

Answer.  Nothing  whatever. 

Question.  I  find  in  your  affidavit,  after  reciting  what  Mr.  Denison  says  to  you, 
this  language: 

"  Mr.  Myers,  I  sent  for  you.  and  you  never  answered  my  note.  I  was 
forced  to  send  for  you  again.  Now,  sir,  he  continued,  unless  you  can  give 
us  (there  were  two  other  persons  present  in  his  office  who  were  strangers  to 
deponent)  certain  information  regarding  persons  who  are  trading  to  Nassau, 
carrying  on  an  extensive  business,  and  so  on,  I  shall  at  once  commit  you  to 
Fort  Lafayette  until  such  information  is  gained.  I  have  power  this  moment  to 
send  you." 

Was  this  with  reference  to  this  trade  that  he  proposed  to  carry  on  this 
matter  ? 

Answer.  This  was  the  first  time  I  ever  received  a  letter  from  Mr.  Denison ; 
this  was  my  first  interview  yith  him. 

Question.  In  that  first  interview  had  you  any  conversation  with  reference  to 
anything  except  it  was  this  bond  business,  or  was  it.  with  reference  to  this  trade 
at  Nassau  ? 

Answer.  It  was  relative  to  parties  in  the  Nassau  business. 

Question.  There  was  a  complaint  about  the  Jose  before  this  conversation? 

Answer.  I  was  first  informed  of  the  seizure  of  this  vessel  by  Mr.  Ilussey  in 
going  down  to  Staten  Island.  I  saw  then  the  steamer  Jose  lying  out  in  the 
bay.  Then  afterwards  he  said  we  have  got  that  steamer  that  belongs  to  Eneas, 
and  we  are  going  to  confiscate  her,  with  all  the  stuff  on  board  of  her.  I  heard 
nothing  further  after  that  until  I  saw  Mr.  Denison.  Mr.  Denison  sent  for  me 
to  know  if  I  could  become  a  witness  on  the  trial,  and  Mr.  Eneas  asked  me  it'  I 
would  be  a  witness  if  he  wanted  me.  I  said  that  I  knew  nothing  of  tin1  trans- 
action with  regard  to  the  seizure,  one  way  or  the  other. 

Question.  Were  you  acquainted  with  Benjamin  before  his  arrest? 

Answer.  No,  sir;  I  had  seen  him;  I  never  had  any  business  with  him. 

Question.  Are  you  a  citizen  of  the  United  States? 

Answer.  Yes,  sir.  # 

Question.  Did  Mr.  Hanscom  or  Mr.  Denison,  in  cither  of  these  conversat  ions, 
say  to  you  that  these  parties  had  better  compromise  this  matter — that  it.  would 
be  easier  than  to  litigate  it,  and  that  they  would  get.  off  better? 

Answer.  They  did. 


238 


NEW    YORK  CUSTOM  HOUSE. 


Question.  In  this  conversation  did  they  give  you  any  intimation  that  the 
money  they  would  give  by  way  of  compromise  was  to  be  divided  alone  among 
them,  or  was  it  to  follow  the  law  of  the  case  ? 

Answer.  It  was  to  be  divided  between  Mr.  Ilanscom,  Mr.  Denison,  Mr.  IIus- 
gey,  and  myself;  we  were  each  to  receive  a  part. 

Question.  Was  this  money  to  be  paid  by  Benjamin  and  Eneas  ? 

Answer.  Yes,  sir. 

Question.  That  money  was  to  be  divided  among  yourselves? 

Answer.  He  said  for  what  money  you  will  get  you  will  receive  your  per 
centage,  Mr.  Hussey  will  receive  his,  and  Mr.  Hanscom  will  receive  his. 

Question.  Was  that  for  the  property  that  was  then  already  confiscated,  or 
was  it  for  the  property  that  was  to  be  seized  in  the  event  that  you  got  up  tho- 
trade  that  you  speak  of? 

Answer.  In  the  event  of  this  property  being  seized,  in  the  first  place;  and  in 
the  second,  also,  with  regard  to  Mr.  Joseph  Eneas,  if  he  had  paid  $2-5,000,  thee 
that  was  to  be  divided. 

Question.  Then  your  understanding  was  that  this  $25,000  was  to  be  di- 
vided among  you  parties,  or  was  it  only  one  half  of  th  at  amount  ? 

Answer.  I  understood  the  whole  of  it,  but  1  may  labor  under  a  mistake.  1 
would  not  undertake  to  say  confidently  whether  it  was  so  or  not. 

Question.  Did  not  these  parties  say  to  you  that  there  were  parties  in  the 
city  carrying  on  an  illegal  trade,  and  they  desired  you  to  approach  them  in  the 
matter  to  induce  them  to  go  on  and  get  up  this  trade,  that  you  speak  of  and  lay 
the  foundation  for  a  clear  case  against  them,  and  then  seize  the  property  in 
transitu  and  confiscate  it  ? 

Answer.  No,  sir;  there  was  nothing  of  that  kind  mentioned  to  me. 

Question.  What  was  your  distinct  understanding  in  regard  to  what  was  to 
be  done,  to  whom  the  money  Avas  to  be  given  in  the  event  of  the  property  being 
seized  ? 

Answer.  The  arrangement  with  Mr.  Ilanscom  and  Mr.  Denison  was,  that  if 
Eneas  would  give  $25,000  that  was  to  have  been  divided  among  us — at  least 
I  so  understood  it.    With  regard  to  Mr.  Woolf  it  was  the  same. 

Question.  You  say  in  your  affidavit  that  they  wanted  you  to  get  parties  here 
to  engage  in  the  purchase  of  goods  and  shipments  to  Nassau  I 

Answer.  That  was  previous ;  that  was  Mr.  Demison's  proposition  to  me  in 
his  office  at  first.  He  said  "you  know  plenty  of  people  in  the  Nassau  trade:, 
get  these  parties  to  charter  a  vessel,  and  when  they  get  their  goods  aboard 
we  can  seize  them  when  they  are  all  ready."  I  gave  him  information  of  one 
man  in  Fulton  street,  Mr.  Evans,  who  did  as  much  as  any  man  in  that  trade  ; 
that  I  thought  Mr.  Evans  would  ship  more  than  any  one  else  Mr.  Denison 
said  we  do  uot  want  him  at  all ;  I  know  the  man ;  you  get  some  of  your  own 
parties  with  this  property,  and  we  can  then  divide  it  before  it  comes  to  a  suit, 
before  any  action  is  taken  in  the  matter.  That  was  the  distinct  understanding 
between  myself  and  Mr.  Denison  at  one  time,  and  at  another  time  with  Mr. 
Hanscom. 

Question.  Did  either  of  them,  or  both,  claim  that  parties  in  this  city  were 
carrying  on  an  illegal  trade,  and  that  they  wanted  to  break  it  up  ? 
Answer.  Yes,  sir. 

Question.  And  that  was  the  object  they  sought  to  accomplish? 
Answer.  That  was  first  mentioned  by  Mr.  Denison. 

Question.  Did  Mr.  Denison  wish  you  to  pay  anything  as  a  consideration  for 
the  surrendering  up  of  this  exchange  and  the  letters  of  your  son-in-law? 
Answe  r.  No,  sir. 

Question.  He  did  not  ask  anything  for  that  f. 
Answer.  No,  sir. 


NEW  YOKK  CUSTOM  HOUSE. 


239 


Question.  What  was  the  character  of  the  paper.-  tin!  Mr.  Denison  had  be- 
longing to  Mr.  Turner? 

Answer.  It  was  exchange;  I  cannot  speak  with  certainty,  but  I  am  given 
to  understand  that  it  was  South  Carolina  bonds,  but  I  will  not  vouch  tor  it. 

Question.  Do  you  know  how  Mr.  Turner  came  by  these  bonds  ? 

Answer.  They  were  sent  by  Mr.  Doswell,  of  Nassau. 

Question.  What  transaction  did  Mr.  Turner  have  with  Mr.  Doswell  that 
brought  about  this  exchange? 

Answer.  I  am  given  to  understand  that  they  were  in  business  together;  that 
Mr.  Turner  had  on  several  occasions  received  exchange  from  Doswell. 

Question.  How  did  Doswell  come  to  send  exchange  upon  South  Carolina? 

Answer.  I  presume  he  must  have  got  it  from  South  Carolina  for  some  busi- 
ness transactions  with  Mr.  Turner  by  his  sending  him  goods. 

Question.  Do  you  know  whether  Mr.  Turner  had  to  pay  anything  for  the 
surrendering  up  of  these  b  inds  \ 

Answer.  I  believe  so. 

Question.  What  makes  you  believe  it  ? 

Answer.  Because  of  the  way  in  which  Mr.  Tinner  expressed  himself. 
Question.  What  did  he  say  1 

Answer.  When  I  met  him  one  day  I  said  to  him,  "  How  do  you  get  along, 
Mr.  Turner?"  Says  he,  "It  is  all  right."  "  Did  you  get  them?"  "Of  course 
I  got  them." 

Question.  What  did  Mr.  Hanscom  say  in  regard  to  his  making  money  out 
of  that  office  ? 

Answer.  He  told  me,  when  he  first  made  this  proposition,  (Mr.  Hussey  was 
present.)  "Mr.  Myers,  I  am  a  poor  man;  I  am  only  here  for  a  short  time;  I 
don't  know  but  1  may  be  discharged  to-morrow ;  while  I  am  here  I  want  to 
make  all  I  can." 

Question.  Did  you  infer  from  that  that  he  was  anxious  to  negotiate  these 
things  ? 

Answer.  Yes,  sir. 

Question.  Did  you  at  any  time  in  this  conversation  with  you  or  Mr.  Denison 
receive  the  impression  that  they  were  trying  to  draw  you  on  and  make  a  tool 
of  you,  and  gather  facts  in  regard  to  this  blockade-running  or  illegal  trade  to 
Nassau  ? 

Answer.  It  might  have  been  so  for  what  I  know.  From  the  manner  of  their 
conversation  I  took  it  as  a  lona  fide  transaction,  that  a  certain  amount  of  money 
was  to  have  been  made  in  that  way. 

Testimony  of  James  B.  Archer. 

New  York,  March  1,  1SG4. 

James  13.  Archer  sworn  and  examined. 

By  the  chairman  : 

Question.  Are  you  connected  with  the  New  York  custom-house? 
Answer.  Yes,  sir;  am  inspector,  and  have  been  since  1^53. 
Question.  Under  whose  directions  do  you  act? 
Answer.  That  of  the  surveyor  of  the  port. 
Question.  Does  he  give  you  your  instructions  1 
Answer.  Yes,  sir,  in  all  instances. 

Question.  And  your  duties  lead  you  to  board  vessels,  and  likewise  to  make 
seizures  upon  land  ? 
Answer.  Yes,  sir. 

Question.  Can  you  tell  us  what  your  instructions  are  very  briefly  ? 


240 


NEW   YORK  CUSTOM  BOUSE. 


Answer.  One  of  our  duties  is  boarding  vessels  and  steamers  for  the  purpose 
of  detecting  frauds. 

Question.  State  more  distinctly  about  your  duties  on  shipboard.  What  is 
vour  first  act  ? 

Answer.  The  first  act  is  generally  to  get  a  list  of  passengers.  We  generally 
have  some  knowledge  of  some  parties  coming  over.  We  get  the  passenger  list 
first;  look  that  over  well;  then  leisurely  walk  through  the  ship  among  the 
passengers,  and  if  we  see  a  suspicious  character,  we  generally  look  after  him. 

Question.  You  make  seizures? 

Answer.  Yes,  sir. 

Question.  If  you  seize  personal  effects,  what  do  you  do  with  them  ? 
Answer.  We  send  them  to  the  seizure-room  in  the  custom-house,  and  make  a 
report  to  the  collector,  one  to  the  naval  officer,  and  one  to  the  surveyor. 
Question.  Do  you  take  the  personal  effects  of  passengers — the  baggage? 
Answer.  No,  sir,  not  the  personal  effects.    We  examine  the  baggage. 
Question.  What  do  you  take  ? 

Answer.  Anything  that  is  dutiable  ;   valuables,  jewelry,  watches,  diamonds, 
and  such  things.    Very  frequently  they  are  concealed  among  the  clothing. 
Question.  Are  offers  ever  made  of  paying  duties  on  the  spot  ? 
Answer.  Not  until  they  are  caught. 
Question.  Are  There  then  ? 
Answer.  Yes,  sir. 
Question.  What  takes  place  then  ? 

Answer.  We  pay  no  attention  to  that,  but  refer  them  to  the  collector.  We 
make  our  report,  and  send  the  information  to  these  gentlemen,  and  they  dispose 
of  the  case  as  they  see  fit.  We  do  not  know  of  anything  that  takes  place  after 
we  make  our  report. 

Question.  Has  there  never  any  money  been  paid  directly  to  you  or  your  as- 
sociates ? 

Answer.  No,  sir. 

Question.  Have  you  never  received  any  yourself  from  passengers  or  persons 
on  board  of  these  steamers  ? 

Answer.  No,  sir  ;  never  received  a  dollar  from  them  ;  could  have  received 
thousands  of  dollars. 

Question.  I  mean  money,  or  effects,  or  presents  ot  merchandise,  or  anything, 
no  matter  what,  in  the  way  of  compensation  or  gratuity,  to  induce  you  to  be 
lax,  or  permit  the  goods  to  go  on  shore. 

Answer.  No,  sir.  It  would  be  impossible  to  d:>  such  a  thing  on  board  ship 
among  several  officers.    There  are  generally  three  or  four  together. 

Question.  The  committee  understand  you  to  say  that  you  do  not  know  of  an 
instance  where  anything  of  this  kind  has  been  received  by  yourself  or  your 
associates  ? 

Answer.  No,  sir ;  not  to  my  knowledge. 

Question.  How  is  it  on  land  in  regard  to  seizures -in  stores? 

Answer.  We  go  there,  make  a  seizure,  take  the  books  and  papers,  and  bring 
them  down  to  the  custom-house.  We  then  leave  the  case  in  the  hands  of  the 
naval  officer,  who  generally  attends  to  that  business. 

Question.  The  naval  officer  gives  directions  as  to  seizures  on  shore? 

Answer.  Yes,  sir.  The  naval  officer  generally  attends  to  the  store  business, 
as  we  call  it — the  land  seizures.  Once  in  a  while  the  surveyor  of  the  port  does  ; 
very  seldom.  The  surveyor  generally  attends  to  the  seizures  on  board  ships. 
With  regard  to  seizures  on  land,  the  naval  officer  says,  "I  have  got  informa- 
tion of  stores  at  such  a  place,  and  I  want  you  to  go  and  get  out  a  search  warrant.  " 

Question.  Do  you  make  these  affidavits  yourself? 

Answer.  I  have  made  many  of  them. 


NEW  YOKK  CUSTOM  HOUSE. 


241 


Question.  After  you  make  the  seizure,  or  take  possession  of  books  and  pa- 
pers, &c.,  do  you  have  anything  more  to  do  with  it? 
Answer.  No,  sir. 

Question.  Do  you  know  anything  about  the  terms  upon  which  the  prosecu- 
tion in  any  such  cases  is  dropped  or  settled  ? 

Answer.  I  do  not.  The  revenue  officers  are  better  posted  in  that  matter  than 
I  am. 

Question.  Has  it  not  been  a  remark,  or  topic  of  conversation,  among  the  em- 
ployes of  the  custom-house,  that  these  seizures  are  sometimes  made  for  the 
purpose  of  compounding  them,  or  making  the  parties  come  down  \ 

Answer.  That  is  a  common  remark  almost  every  day. 

Question.  Do  you  know  anything,  of  your  own  knowledge,  any  facts,  or  cir- 
cumstances, or  cases  that  would  justify  such  a  suspicion  being  entertained  ? 

Answer.  I  do  not,  of  my  own  personal  knowledge.  I  can  only  state  what  1 
have  heard. 

Question.  Can  you  give  us  the  names  of  any  storekeepers  who  say  so,  or 
whom  you  have  reason  to  believe  have  said  so  ? 

Answer.  A  firm  in  Broadway  by  the  name  of  Steinberg  &  Lichenstadter. 
Question.  Do  you  know  anything  about  the  facts  in  that  case  ? 
Answer.  I  do  not.    I  went  to  the  store. 

Question.  Who  was  with  you  ?  * 
Answer.  Mr.  Brown  and  Mr.  Isaacs  and  Mr.  Graham. 

Question.  Were  papers  seized  and  the  store  taken  possession  of  in  that 
instance  ? 

Answer.  Yes,  sir. 

Question.  Do  you  know  what  became  of  the  transaction — whether  it  was 
prosecuted  or  not  ? 

Answer.  I  don't  know,  of  my  own  knowledge.    I  don't  think  it  was  prosecuted . 
Question.  What  was  the  rumor  or  report  with  reference  to  this  case? 
Answer.  Mr.  Steinberg  himself  told  me  that  he  had  to  pay  (he  did  not  state 
the  amount)  to  stop  it  from  going  to  trial. 
Question.  You  don't  know  the  amount  ? 
Answer.  No,  sir. 

Question.  Did  you  ever  hear  the  amount  i 

Answer.  No,  sir. 

Question.  When  was  that  ? 

Answer.  It  was  some  two  years  ago. 

Question.  Were  you  ever  questioned  about  this  before  ? 

Answer.  No,  sir,  by  nobody.  I  was  before  the  Solicitor  of  the  Treasury  (Mr. 
.Jordan)  and  before  the  previous  congressional  committee  a  year  ago,  (the  Van 
Wyck  committee.) 

Question.  Do  you  know  of  any  other  cases  of  this  kind  talked  of,  where  ■ 
they  have  been  settled  by  the  payment  of  anything  to  prevent  them  from  going 
to  trial  ? 

Answer.  No,  sir ;  I  cannot  think  of  any  at  present.  Mr.  Isaacs  was  better 
posted  in  that  business  than  I  was.    He  knew  more  about  it. 

Question.  In  this  case  of  which  you  have  been  speaking,  did  you  ever  heai 
it  said  who  the  money  was  paid  to? 

Answer.  To  the  government,  I  suppose. 

Question.  Did  you  hear  to  what  officer  ? 

Answer.  No,  sir. 

Question.  What  is  your  compensation  or  salary  ? 
Answer.  $3  a  day. 
Question.  What  else  ? 

Answer.  If  I  go  out  of  the  district  I  get  ten  cents  a  mile  as  mileage. 
H.  Rep.  Com.  Ill  16 


242 


NEW  YORK  CUSTOM  HOUSE. 


Question.  Any  allowance  for  board? 
Answer.  Yes,  sir. 

Question.  Do  you  have  anything  besides  thisin  the  way  of  presents  or  com- 
pensation from  anybody  ? 

Answer.  A  year  ago  I  had  $100. 
Question.  That  is  not  regular? 
Answer.  No,  sir. 

Question.  Do  you  not  receive  from  parties  in  this  city  any  other  sums  at  any 
time,  or  anything  else  ? 
Answer.  Not  a  cent. 

Question.  Can  you  support  your  family  upon  that  ? 
Answer.  Partly;  my  wife  has  means  of  her  own. 

By  Mr.  Le  Blond  : 

Question.  You  say  you  might  have  received  large  sums  of  money  when  you 
were  making  seizures  ? 
Answer.  Yes,  sir. 

Question.  Have  you  ever  had  money  offered  you  by  any  importers  or  pas- 
sengers ? 

Answer.  I  have  had  from  passengers. 
Question.  Would  you  receive  it  ? 

Answer.  Yes,  sir,  and  the  goods  also  with  it — take  the  money  and  the  goods 
also. 

Question.  What  would  you  do  with  the  money? 

Answer.  Give  it  to  the  collector — put  it  in  an  envelope,  seal  it,  and  put  the 
facts  on  the  back  of  it. 

Question.  What  was  done  with  the  money  afterwards? 

Answer.  It  was  never  a  very  large  amount ;  after  the  case  was  disposed  of, 
and  the  goods  were  sold,  the  collector  used  generally  to  divide  it  among  us — 
that  is,  the  former  collector  did  that. 

Question.  Has  the  present  collector  done  so  ? 

Answer.  No,  sir. 

Question.  Was  it  returned  to  the  party  giving  it  afterwards  ? 
Answ  er.  It  was  in  one  case  that  I  recollect. 

Question.  What  is  done  with  this  money  by  the  present  collector  ? 
Answrer.  I  think  the  present  collector  has  not  any  at  present. 
Question.  Have  there  been  any  offers  of  that  kind  made  of  late  ? 
Answer.  I  do  not  think  that  there  have. 
Question.  Not  in  some  time  ? 
Answer.  No,  sir. 

Question.  This  firm  that  you  speak  of  in  Broadway,  (Steinberg  &  Lichen- 
stadter,)  where  a  seizure  was  made,  are  they  importers  of  foreign  goods  ? 
Answer.  Yes,  sir. 
Question.  What  kind  of  goods  ? 
Answer.  Fancy  goods,  hosiery,  &c. 

By  Mr.  Rollins  : 

Question.  You  say  that  under  a  former  administration  the  money  that  was 
placed  iii  your  hands  by  passengers  and  other  parties  wTho  were  intending  to 
evade  the  revenue  laws  was  then  placed  in  the  hands  of  the  collector,  and  was 
then  divided  subsequently  among  the  officers? 

Answer.  Yes,  sir. 

Question.  Was  that  a  matter  of  frequent  occurrence? 

Answer.  No,  sir ;  very  seldom ;  not  more  than  once  a  year ;  it  did  not  amount 
to  anything. 

Question.  Do  you  mean  to  be  understood  as  saying  that  the  $100  you  received 


NEW  YORK  CUSTOM  HOUSE. 


243 


as  a  present,  with  the  S3  per  day,  the  mileage  and  board,  $2  a  day,  when 
away,  is  all  the  money  yon  have  received  since  yon  have  been  in  your  present 
position  from  all  sources? 

Answer.  Yes,  sir. 

Question.  Do  yon  mean  that  ? 

Answer.  Y~es,  sir. 

Question.  Have  you  ever  paid  money,  directly  or  indirectly,  for  any  purpose 
whatsoever,  for  the  purpose  of  securing  your  present  position  or  retaining  it  ? 
Answer.  No,  sir. 

Testimony  of  Alexander  Isaacs,  recalled. 

Tuesday,  March  1,  1864. 

Alexander  Isaacs  recalled. 
By  the  chairman  : 

Question.  Did  you  go  to  the  store  of  Steinberg  &  Lichenstadter  and  make  a 
seizure  ? 

Answer.  Yes,  sir ;  with  Mr.  Brown,  Archer,  Gray,  and  some  outside  officers. 
Question.  How  long  since  was  it  ? 
Answer.  November  14,  1862. 

Question.  Were  the  books  and  papers  taken  to  the  custom-house  1 
Answer.  Yes,  sir  ;  I  took  myself,  from  Mr.  Steinberg's  hands,  a  tin  box,  and 
that  was  the  main  evidence. 

Question.  How  long  was  the  possession  of  the  store  retained? 
Answer.  I  think  about  two  weeks. 
Question.  What  became  of  the  case  then  ? 

Answer.  It  was  settled  by  Mr.  Solomon  L.  Hull,  a  lawyer  for  Mr.  Steinberg. 

Question.  Who  was  it  settled  with  1 

Answer.  With  the  naval  officer. 

Question.  How  ? 

Answer.  I  think  for  $15,000. 

Question.  Have  you  got  a  memorandum  of  it  ? 

Answer.  Y<  s,  sir. 

Question.  When  was  it  made  ? 

Answer.  Made  at  the  time  of  the  seizure  ;  I  have  always  been  accustomed  to 
make  these  entries  for  the  last  seven  years. 

Question.  Your  knowledge  of  this  815,000  being  paid  is  from  hearsay? 
Answer.  Only  from  hearsay;  I  have  no  positive  knowledge  of  it. 
Question.  Who  told  you  this  $15,000  was  paid  ? 
Answer.  Mr.  Hull  was  one  of  the  gentlemen. 
Question.  Do  you  swear  that  he  told  you  ? 

Answer.  He  told  me  certainly  that  the  amount  (8  15.000)  was  paid  from  Stein- 
berg &  Lichenstadter  to  the  district  attorney  ;  first  I  was  told  that  it  was  SS,000, 
and  then  I  was  told,  by  Mr.  Hull,  that  it  was  815,000. 

By  Mr.  Rollins : 

Question.  How  long  has  the  practice  of  suggesting  the  employment  of  certain 
lawyers  as  counsel  by  parties  whose  books  and  papers  have  been  seized  pre- 
vailed ? 

Answer.  For  the  last  six  years,  certainly ;  under  the  last  administration  and 
this. 

Question.  Have  you  usually  made  these  suggestions  yourself  as  to  the  em- 
ployment of  counsel  ? 

Answer.  Sometimes  they  ask  me  this,  "  what  they  had  better  do  ?"  When 
they  have,  I  have  invariably  recommended  one  or  the  other  of  these  gentlemen  ; 


244 


NEW  YORK  CUSTOM  HOUSE. 


and  when  they  have  not,  I  have  tried  to  initiate  myself  into  the  good  graces  of 
these  gentlemen  to  recommend  them. 

Question.  What  firms  have  you  suggested  ? 

Answer.  I  have  generally  mentioned  the  names  of  Webster  &  Craig,  Kauf- 
man, Wilcoxsen  &  Frank,  and  13.  F.  Dunning. 

Question.  Have  you  recommended  these  firms  during  the  last  six  years  ? 
Answer.  I  have. 

Testimony  of  Thomas  J.  Brown. 

Wednesday,  March  2,  1864. 

Thomas  J.  Brown  sworn  and  examined. 
By  the  chairman  : 

Question.  What  is  your  connexion  with,  the  custom-house  ? 

Answer.  I  am  deputy  surveyor  of  the  port  under  Mr.  Andrews. 

Question.  How  long  have  you  been  in  the  custom4iouse  1 

Answer.  Since  the  administration  of  Taylor ;  I  came  in  the  latter  part  of  Mr. 
Maxwell's  administration  ;  I  think  it  is  about  14  years  ago. 

Question.  How  long  have  you  occupied  your  present  position  1 

Answer.  It  is  about  3 J  years  now ;  I  was  made  deputy  surveyor  shortly 
after  Mr.  Andrews  was  appointed  surveyor. 

Question.  Will  you  indicate  briefly  what  are  the  duties  devolving  upon  you? 

Answer.  I  have  general  supervision  of  the  officers,  and  discharging  vessels  and 
steamers  coming  from  foreign  ports. 

Question.  The  inspectors  act  under  you  ? 

Answer,  Yes,  sir,  and  the  special  aids,  particularly  in  the  night  department  : 
for  the  last  two  years  Mr.  Andrews  has  put  them  under  my  charge. 

Question.  Do  you  recollect  how  many  there  are  on  the  staff  of  the  night  de- 
partment ] 

Answer.  125  ;  that  is,  including  the  captain  and  the  lieutenants ;  they  ail 
report  at  the  barge  office  before  sundown  every  day,  and  the  captain  sends  them 
out ;  he  generally  sends  two  men  to  a  steamer. 

Question.  What  are  their  duties  1 

Answer.  To  relieve  the  day  officer  and  to  remain  in  charge  until  they  are  re- 
lieved by  the  day  officer  in  the  morning. 

Question.  Have  they  anything  to  do  except  to  keep  watch  1 

Answer.  Nothing  else,  except  to  see' what  is  going  on  ;  they  have  nothing  to 
do  with  examining  the  goods  ;  they  have  no  right  to  pass  anything,  not  even  a 
sailor's  dunnage;  they  are  to  be  detained  until  the  day  officer  takes  charge. 

Question.  Are  you  aware  of  any  abuses  committed  in  this  branch  of  the  ser- 
vice that  should  be  corrected — I  mean  men  in  the  night  department  I 

Answer.  No,  sir;  nothing  that  I  could  suggest ;  J  have  been  very  rigid  myself 
since  I  have  had  charge  of  them. 

Question.  Are  you  aware  of  any  cases  of  bribery  or  fraud,  or  anything  of  that 
kind,  occurring  in  your  department  ? 

Answer.  Nothing  to  my  knowledge  ;  if  I  had  been  aware  of  anything  of  the 
kind  I  should  have  suspended  the  parties  immediately. 

Question.  Have  you  any  knowledge  of  any  one  receiving  either  occasionally 
or  habitually  any  extra  compensation  from  outsiders  in  the  way  of  presents, 
merchandise,  wines,  money,  or  gratuity  of  any  kind  1 

Answer.  No,  sir;  not  a  cent.  Since  I  have  been  deputy  surveyor  I  have  at 
different  times  not  only  selected  my  own  men,  those  especially  connected  with 
the  surveyor's  department,  but  I  have  detailed  men  outside  of  the  department 
whom  I  knew  to  watch  the  officers  to  see  if  they  did  take  money  for  the  reason 


NEW  YORK  CUSTOM  HOUSE. 


245 


that  people  arriving  at  this  port  should  be  treated  with  common  civility  and  at- 
tention, and  from  the  fact  that  I  knew  that  in  a  great  many  of  the  European 
ports  such  a  custom  of  receiving  presents  on  the  part  of  officers  detailed  for  like 
duty  prevails. 

By  Mr.  Rollins  : 

Question.  Did  you  detail  these  men  to  watch  these  officers  because  of  any  in- 
formation or  charges  that  had  been  made  in  reference  to  them  I 

Answer.  No,  sir;  only  from  the  fact  that  I  had  heard  merchants  and  other 
persons  arriving  here  from  Liverpool,  Paris,  and  other  places,  say  that  they  al- 
ways expected  to  give  the  officers  on  board  something.  Mr.  Van  Wyck's  com- 
mittee were  very  particular  upon  this  subject,  and  I  told  them  at  the  time  that  I 
should  make  it  my  business  to  be  strict  in  watching  the  persons  under  my  charge. 

By  the  chairman  : 

Question.  Do  you  know,  of  your  own  knowledge,  any  one  in  any  department 
of  the  custom-house  who  is  in  the  habit  of  receiving  money  for  any  favors  he 
may  extend  to  persons  with  whom  he  may  have  occasion  to  transact  business  I 

Answer.  No,  sir. 

By  Mr.  Rollins  : 

Question.  What  is  your  salary  ? 
Answer.  $2,000. 

By  the  chairman  : 
Question.  What  are  your  receipts  outside  of  the  salary  ? 

Answer.  My  receipts  outside  of  my  salary  are  what  I  exactly  receive  for 
mileage  for  going  out  of  the  city  and  my  board.  The  first  seizure  that  1  made 
was  $27,000  in  value,  and  that  I  took  on  the  body,  (the  large  diamond  seizure,) 
and  from  that  time  to  the  present  (1  could  not  tell  you  how  many  hundreds  of 
thousand  dollars  of  diamonds,  laces,  &c,  I  have  taken,)  I  have  never  received 
a  cent,  except  what  I  have  stated  and"  a  present  of  $100  that  I  had  new 
year's. 

Question.  Have  you  any  knowledge  of  any  one  in  your  department,  or  any 
other  department  of  the  custom-house,  receiving  any  extra  compensation1? 

Answer.  Nobody,  unless  the  surveyor.    I  presume  he  receives  his  portion  of 
the  seizures  with  the  other  heads  of  the  department. 
By  Mr.  Rollins  : 

Question.  Have  you  ever  known  of  an  instance  where  seizures  have  been 
made  of  watches,  jewelry,  laces,  and  the  property  delivered  up  on  the  payment 
of  a  certain  amount  of  money,  without  the  property  being  placed  in  the  custody 
of  the  persons  having  charge  of  the  seizure-room  1 

Answer.  I  have  heard  of  these  cases  being  settled  by  the  parties  paying  the 
appraised  value.  I  have  never  been  present  at  any  such  settlement,  and  there- 
fore it  is  only  hearsay.  I  have  no  doubt  there  are  many  cases  where  they 
make  seizures  and  the  goods  are  deposited  with  the  collector. 

Question.  You  misunderstand  me;  I  mean  without  depositing  the  goods  with 
the  collector '{ 

Answer.  No,  sir. 

Question.  It  is  charged  that  seizures  have  been  made  at  different  times,  and 
that  the  parties  have  compromised  the  matter,  and  have  got  their  goods  back  by 
the  payment  of  a  less  sum  than  their  value. 

Answer.  There  is  nothing  of  that  kind,  to  my  knowledge,  in  the  surveyor's 
department.  Such  a  thing  would  be  very  hard  to  do.  I  never  heard  of  such 
a  case  in  my  life.  So  far  as  I  am  personally  concerned,  I  assure  you  no  such 
thing  ever  occurred  to  my  knowledge. 


24G 


NEW  YORK  CUSTOM  IIOU§E. 


Question.  Did  you  pay  anything  to  any  person,  or  cause  to  be  paid,  directly 
or  indirectly,  for  the  office  you  now  hold,  or  have  you  paid  anything,  directly  or 
indirectly,  for  the  purpose  of  retaining  it  ? 

Answer.  Not  a  cent. 

Testimony  of  Charles  G.  Cent  an. 

Wednesday,  March  2,  1864. 

Charles  G.  Centan  sworn  and  examined. 
By  the  chairman  : 

Question.  Are  you  a  native  of  this  country  ? 
Answer.  No,  sir;  am  a  native  of  France. 
Question.  How  long  have  you  been  in  this  country  i 
Answer.  Over  30  years. 

Question.  How  long  have  you  been  engaged  in  the  business  of  custom-house 
broker  ? 

Answer.  Since  1849. 

Question.  And  you  are  still  engaged  in  it? 
Answer.  Yes,  sir. 

Question.  Explain  to  us  the  mode  of  passing  goods  through  the  custom- 
house. 

Answer.  We  get  the  invoice  from  the  merchant,  go  with  it  to  the  entry  clerk, 
from  there  to  the  naval  office;  there  the  invoice  has  to  be  sworn  to  by  the  party, 
and  in  case  of  more  than  one  package  a  bond  must  be  given.  When  we  pay 
the  duty  the  cashier  checks  the  permit  and  keeps  the  invoice,  and  that  invoice 
is  sent  to  the  appraiser  ;  and  after  the  appraiser  sends  it  back  to  the  collector  the 
invoice  has  to  be  checked  by  the  clerk  who  passed  it  first ;  and  when  that  is 
correct,  we  have  got  the  permit  that  the  case  has  been  examined,  and  that  a  penal 
bond  has  been  given  for  the  release  of  the  goods. 

Question.  How  long  a  time  does  it  take  to  pass  goods  through  the  custom- 
house 1 

Answer.  That  depends  upon  the  clerk ;  some  clerks  make  you  wait  more  than 
others. 

Question.  What  helps  them  along? 

Answer.  I  think  they  probably  receive  something  in  the  way  of  presents — 
cigars,  &c. 

Question.  Do  you  know  of  any  clerk  receiving  anything  in  the  way  of 
presents  for  expediting  business? 
Answer.  I  cannot  say. 

Question.  Have  you  ever  paid  any  clerk  yourself  anything  extra? 
Answer.  I  have  not  positively  paid  something,  but  a  clerk  sometimes  wants 
to  borrow  three  or  five  dollars  and  I  give  it  to  him. 

Question.  How  long  since  you  ceased  paying  anything  of  this  kind  ? 
Answer.  About  IS  months  ago. 

Question.  Have  you  not  paid  anything  within  the  last  year  ? 
Answer.  No,  sir,  to  no  one ;  clerks  sometimes  want  something  and  they  go  to 
the  merchants. 

Question.  Who  are  the  merchants  that  do  these  things  ? 

Answer.  I  do  not  know. 

Question.  Can  you  tell  who  the  clerks  are  ? 

Answer.  No,  sir;  I  think  they  do  it  because  I  see  some  clerks  pass  these 
invoices  quicker  for  some  parties  than  they  do  for  me. 

Question.  Do  you  know  whether  the  clerks  receive  anything  from  these 
merchants  ? 


NEW  YORK  CUSTOM  HOUSE. 


247 


Answer.  No,  sir. 

Question.  You  only  know  that  you  see  some  merchants  get  goods  quicker 
than  others  ? 

Answer.  Certainly. 

Question.  Do  you  ask  why  the  goods  of  these  men  arc  passed  quicker? 

Answer.  Yes,  sir. 

Question.  What  do  they  say? 

Answer.  That  the  goods  came  in  before  mine,  when  I  knew  that  they  did 
not.  They  bring  a  paper  and  put  it  on  the  desk  of  the  clerk,  and  the  clerk 
puts  it  in  the  pigeon-hole,  and  he  passes  it  before  mine. 

Question.  Such  a  proceeding  as  you  speak  of,  does  it  take  place  every  day? 

Answer.  Yes,  sir. 

Question.  How  many  entry  clerks  are  there  ? 

Answer.  In  the  collector's  office  there  are  five,  and  in  the  naval  office  four. 

Question.  Does  the  same  difficulty  occur  in  both  offices? 

Answer.  Yes,  sir;  the  same  delays  in  both  offices. 

Question.  Can  you  give  me  the  name  of  a  clerk  Avho  does  this? 

Answer.  Every  one. 

By  Mr.  llollins : 

Question.  How  long  were  you  in  the  habit  of  feeing  clerks  prior  to  18 
months  since? 

Answer.  I  think  since  I  was  in  the  custom-house  business,  for  about  15  years. 
Question.  Were  you  in  the  habit  of  indirectly  giving  the  clerks  a  fee  or  sum 
of  money  for  15  years  prior  to  a  period  of  18  months  since? 
Answer.  Yes,  sir. 

Question.  What  would  be  about  the  average  fee  to  the  entry  clerk? 
Answer.  About  $10  a  month. 

Question.  You  do  the  business  of  LeBiun  &  Thompson? 
Answer.  Yes,  sir. 

Question.  Do  you  recollect  a  case  where  there  was  an  extraordinary  delay 
last  October  or  November  in  getting  a  permit  for  these  parties  to  take  goods 
from  the  custom-house? 

Answer.  Yes,  sir ;  I  recollect  that  their  goods  were  detained  because  some 
previous  invoices  of  this  firm  were  too  low  and  the  appraiser  raised  them  ;  and 
for  fear  of  a  recurrence  of  the  same  thing  the  custom-house  officers  retained 
those  cases  of  goods  in  order  that  they  might  ascertain  the  facts  with  regard  to 
them. 

Question.  How  many  cases  were  there  in  question  ? 
Answer.  There  were  five  or  six. 
Question.  How  long  were  the  goods  detained  ? 
Answer.  Three  or  four  weeks. 

Testimony  of  Patrick  W.  DcrJiam. 

New  York,  April  13,  1864. 

Patrick  W.  Derham  sworn. 
By  the  chairman  : 

Question.  Will  you  please  give  the  committee  your  business  and  residence  ? 
Answer.  I  reside  in  Brooklyn ;  my  place  of  business  is  at  15  Nassau  street  ; 
and  my  business  is  that  of  a  stationer. 

Question.  Did  you  supply  the  New  Yrork  custom-house  last  year  with  stationery  ? 
Answer.  Yes,  sir. 

Question.  You  put  in  proposals,  I  suppose,  as  the  government  required? 
Answer.  Yres,  sir. 


248 


NEW  YORK  CUSTOM  HOUSE. 


Question.  Preparatory  thereto  did  you  have  any  conversation  with  Mr. 
Palmer  ? 

Answer.  I  did. 

Question.  Did  you  obtain  from  him  any  knowledge  that  aided  you  in  making 
your  proposals  ? 

Answer.  I  did  not. 

Question.  Did  you,  in  reference  to  those  proposals  or  the  obtaining  of  that 
contract,  pay  him  any  money  ? 
Answer.  No,  sir. 

Question.  Have  you  had  any  business  transactions  with  him  1 

Answer.  J  have  had  since.  I  have  loaned  him  money,  exchanged  checks 
with  him,  some  of  which  he  owes  me  yet. 

Question.  Did  this  loaning  of  money  or  exchanging  checks  with  him  have  any 
connexion  with  the  supply  of  stationery  or  the  acceptance  of  your  proposals  1 

Answer.  No,  sir,  not  the  remotest. 

Question.  Did  you  have  any  knowledge  of  the  terms  upon  which  other  parties 
proposed  to  supply  stationery  to  the  custom-house  previous  to  putting  in  your 
own  bid  a  year  ago  ? 

Answer.  I  did  not.  All  I  had  was  from  my  own  knowledge,  derived  from 
having  been  in  the  employ  of  parties  who  supplied  the  custom-house  for  years, 
I  had  been  clerk  for  them,  and  kneAV  what  they  used  there. 

Question.  How  came  these  confidential  pecuniary  relations  to  exist  between 
Palmer  and  yourself? 

Answer.  Mr.  Palmer  everybody  around  the  custom-house  supposed  to  be  the 
principal  man  there,  and  he,  in  fact,  was  said  to  be  the  collector.  Everything 
he  did  was  supposed  to  be  right,  and,  of  course,  every  one  around  the  custom- 
house who  had  dealings  there  wanted  to  be  on  friendly  terms  with  Palmer.  I 
v.  ,!-  introduced  to  Mr.  Palmer,  and  he  came  on  several  occasions  and  bought 
stationery  of  me.  Mr.  Hunter  allowed  items  that  Palmer  obtained  to  the  amount 
of  fifty  dollars.  He  would  get  such  things  as  paper-weights,  porte-monnaies. 
gold  pens,  knives,  and  things  of  that  kind.  It  went  on  finally  until  he  got  a 
bill  amounting  to,  I  think,  about  ninety  dollars.  I  presented  the  bill  to  Mr. 
Hunter,  and  Mr.  Hunter  said  he  would  not  pay  it.  He  said  he  had  his  own 
position  to  look  after,  and  this  thing  would  not  do ;  that  an  investigation  might 
turn  up,  and  he  did  not  want  to  be  accountable  for  anything  that  did  not  come 
in  the  regular  way.  He  said,  "  I  told  you  before  now  that  you  had  better  stop." 
Palmer  would  come  in  when  I  was  absent,  and  the  clerks  would  give  him  sta- 
tionery. I  had  a  bill  for  stationery  for  ninety  dollars  against  him  at  the  time 
he  was  sent  to  Fort  Lafayette.  Mr.  Hunter  had  had  it  for  some  time  previous. 
He  said  he  would  see  about  it.  It  was  in  the  hands  of  Mr.  Hunter  and  Mr. 
Ogden  about  two  months.  I  went  down  to  know  whether  I  was  going  to  get 
anything  for  it.  I  went  to  Mr.  Barney.  The  items  he  had  were  specified  on 
the  bill — gold  pens,  knives,  &c.  Mr.  Barney  said  he  did  not  suppose  that  he 
was  authorized  to  get  these  things.  I  told  him  I  had  no  written  order  for  them. 
He  said  "  I  will  see  what  I  can  do  for  you,"  and  that  is  the  last  I  have  heard 
of  it. 

Question.  How  came  this  confidential  money  relation  to  exist  between  you 
and  Palmer? 

Answer.  As  I  told  you,  I  had  been  introduced  to  Palmer.  I  supposed  that 
Mr.  Palmer  was  the  principal  man  that  run  the  machine  in  the  custom-house, 
so  I  did  not  want  to  make  an  enemy  of  him,  because  it  might  hurt  me,  and  I 
kept  on  in  this  way,  lending  him  money.  He  sent  a  messenger  with  his  note 
for  $200.  At  this  time  I  did  not  have  plenty  of  funds,  but  I  managed  to  give 
him  the  money  for  it.  I  believe  it  was  a  sixty  days'  note.  I  thought  if  I 
could  not  deposit  it  in  the  bank  I  would  be  able  to  negotiate  it  with  some  one 
else  upon  Mr.  Palmer's  credit  at  that  time.    I  found  out  that  they  would  not 


NEW  YORK  CUSTOM  HOUSE. 


249 


take  it  on  deposit  at  the  Mercantile  Bank,  where  I  kept  my  funds,  and  it  was 
thrown  back  on  my  hands.  When  the  note  was  due  I  went  to  Palmer,  and  In- 
said  that  the  money  would  be  forthcoming  in  a  few  days.  I  believe  1  exchanged 
checks  with  him  after  that,  lie  gave  me  a  check  dated  a  week  ahead.  I  found 
no  difficulty  in  this  respect,  except  upon  one  occasion  I  deposited  his  check 
countersigned  in  the  Bank  of  the  Commonwealth,  to  which  I  had  changed  my 
account.  A  few  days  afterwards  the  porter  came  down  and  brought  the  check, 
stamped  on  the  face,  "No  funds  in  the  Broadway  Bank."  So  1  ran  down  to 
Mr.  Palmer  and  told  him  that  was  no  way  of  doing  business.  He  called  his 
messenger,  and  I  went  with  him  to  the  Broadway  Bank  and  found  there  were 
not  sufficient  funds  to  pay  the  check,  which,  I  believe,  amounted  to  $.200.  So 
the  messenger  made  a  deposit,  and  the  teller  says,  "There  are  not  funds  enough  to 
pay  now  ;  "  and  he  said  he  had  paid  $500  in  the  morning  on  account  of  a  cluck 
of  Palmer.  I  said  to  the  messenger,  "This  is  noway  of  doing  business,  and  this 
thing  should  not  happen  again  ;  "  and  he  said  he  would  go  and  see  Palmer  about 
it.  He  came  back  and  said  it  was  a  mistake  of  the  teller's  ;  that  there  was 
money  there;  you  will  have  to  go  to  the  president  in  the  back  oilicc.  The 
president  came  up  to  the  paying  teller,  and  the  teller  explained  to  him  how  the 
matter  stood.  There  was  not  money  enough  to  pay  this  check.  I  came  along 
down,  and  Palmer  told  me  it  would  be  made  all  right  in  a  few  hours.  He  came 
to  the  store  and  paid  me  the  money  in  two  one  hundred  dollar  bills,  and  took  the 
note.  He  came  along  again  afterwards,  and  I  gave  him  my  check,  and  every- 
thing went  on  well  from  that  time  until  the  last  check.  When  I  gave  him  the 
last  check  he  gave  me  his  dated  a  week  ahead.  I  came  to  his  office,  (he  had  an 
office  in  William  street,)  and  says  I,  "  The  amount  of  the  check  ($200)  I  want  to- 
day." Says  he,  "  Mr.  Derham,  that  will  be  all  right."  I  went  up  to  the  store, 
and  I  believe  it  was  that  evening  he  said  to  me,  "  If  you  do  not  want  this 
money  to  use,  let  it  go  until  to-morrow."  I  said  I  was  going  to  use  the  check 
on  to-morrow,  and  could  not  get  along  without  it  any  longer.  So  Ire  sent  up 
his  man  to  me  about  5  o'clock  in  the  evening  with  two  one  hundred  dollar  bills, 
who  says,  "Mr.  Derham,  here  is  this  money  of  Mr.  Palmer,  but  Mr.  Palmer 
wants,  as  a  special  favor,  that  you  will  let  this  go  until  Monday."  It  was  then 
Friday.  I  said,  "I  want  the  money,  but  at  the  special  request  of  Mr.  Palmer  I 
will  try  to  get  along."  It  struck  me  after  he  went  out  that  everything  was  not 
right;  and  it  came  to  my  recollection  when  I  was  down  at  Palmer's  office  the 
day  before  that  Palmer  felt  uneasy.  There  were  reports  about  investigating 
committees,  and  I  felt  afraid  that  all  was  not  right.  So  the  matter  passed  on 
until  the  Monday  following,  when  I  stopped  to  see  a  customer  of  mine  in  Fulton 
street,  and  I  chanced  to  see  the  "  World  "  newspaper,  and  read  of  the  arrest  of 
Palmer.  It  struck  me  that  my  two  hundred  dollars  was  gone.  I  came  up  to 
the  store  and  sent  my  boy  to  the  Broadway  Bank  to  have  this  check  certified. 
My  boy  came  back  and  said  there  was  no  money  there.  So  he  is  owing  me 
two  hundred  dollars  on  that  check,  I  believe  one  hundred  and  fifty  dollars  on  a 
note,  and  two  hundred  dollars  on  another  note.  I  had  no  doubt  when  I  took 
these  notes  that  they  were  good.  I  had  no  other  reason  for  giving  him  that 
money  other  than  that  I  supposed  he  was  the  ruling  man  in  the  custom-house, 
and  I  did  not  want  to  make  an  enemy  of  him. 

Testimony  of  James  W.  Ward. 

New  York,  April  11,  1864. 

James  W.  Ward  sworn. 
By  the  chairman  : 

Question.  Are  you  a  clerk  in  the  custom-house  ? 
Answer.  1  am. 


250 


NEW  YORK  CUSTOM  HOUSE. 


Question.  For  how  long  a  time  ? 

Answer.  Since  early  in  November  of  last  year. 

Question.  Were  you  directed  by  Mr.  Hanscom,  or  any  other  person  con- 
nected with  the  custom-house,  to  assist  in  searching  for  missing-  bonds  ? 
Answer.  No,  sir.    I  had  nothing  to  do  with  that  at  all  by  appointment. 
Question.  What  room  do  you  occupy  there? 

Answer.  Before  I  came  there  there  were  two  rooms  contiguous,  opening  by  a 
double  door,  one  into  the  other,  which  had  been  occupied  by  Mr.  Stanton  as  his 
one  office;  and  after  his  removal,  and  when  I  was  introduced  there  as  a  clerk 
by  Mr.  Barney,  the  two  offices  were  under  Mr.  Hanscom's  supervision.  The 
office  that  I  was  in  was  the  office  in  which  the  bonds  for  shipments  from  this 
port  were  taken,  filed,  and  recorded.  Mr.  Hanscom  occupied  the  room  in  which 
the  seizure  business  and  the  cancellation  of  bonds  were  attended  to.  Since  that 
time  the  two  rooms  have  been  divided,  and  they  are  now  two  divisions,  under 
two  separate  deputies.  I  occupied  the  room  which  is  now  known  as  division 
nine,  under  the  charge  of  Mr.  Runkle.  That  was  the  room  occupied  by  Mr. 
Stanton  during  his  administration,  in  conjunction  with  the  room  now  occupied 
by  Mr.  Hanscom  as  the  tenth  division.  The  desk  that  I  have  was  in  charge, 
as  I  understand,  of  Mr.  Stanton's  son  and  clerk.  That  was  previous  to  my 
introduction  into  the  office.  I  had  no  instructions  to  make  any  search  in  rela- 
tion to  these  missing  bonds.  Mr.  Hanscom  undertook  to  arrange,  sort,  examine, 
and  certify  as  to  the  bonds  at  the  time  of  his  coming  in,  and  subsequently,  and, 
for  that  purpose,  had  all  the  bonds  overhauled  by  Mr.  Phillips  and  Mr. 
Leland,  to  whom  he  gave  instructions  to  make  searches  and  examinations 
of  all  places  where  the  bonds  were  likely  to  be;  to  arrange  and  record  them, 
and  report  all  missing  ones.  I  had  no  part  myself  in  the  investigation,  but  I 
knew  it  was  going  on  from  the  necessity  which  constantly  occurred  of  their 
taking  my  books  to  assist  in  making  the  examinations.  It  appeared  from  this 
examination  that  several  bonds  recorded  on  the  books  of  the  office  as  having 
been  taken  were  missing,  and  were  not  in  their  proper  files.  Mr.  Hanscom 
directed  search  after  these  bonds,  and  a  search  was  made  by  these  gentlemen  to 
my  knowledge,  but  I  had  no  instructions  about  it  and  had  no  part  in  it  myself. 
This  desk  that  I  occupied  was  occupied  by  Cady  Stanton,  to  which  Mr.  H.  B. 
Stanton  himself  had  access,  and  for  which  he  had  use.  When  this  desk  was 
given  to  me,  as  the  bond  clerk,  as  my  desk  in  that  office,  I  naturally  looked, 
before  or  at  the  time  of  taking  possession  of  it,  over  all  the  drawers  and  pigeon- 
holes to  see  what  there  was  in  them,  and  what  might  be  removed,  intending  to 
occupy  it  entirely  with  my  own  papers  relating  to  my  functions  as  clerk.  So  I 
looked  over  the  papers,  drew  out  all  the  drawers,  and  tumbled  them  all  over. 
I  found  that  there  were  three  drawers  that  had  no  locks  upon  them.  They 
never  had  locks,  and  were  mere  loose,  miscellaneous  drawers  for  papers  of  no 
official  value  Other  drawers  in  the  same  desk  had  locks  and  keys,  in  which 
papers  of  official  importance  were  preserved.  All  thev  papers  1  overhauled,  and 
I  found  some  of  them  to  be  cancelled  certificates  of  old  dates,  some  reports 
from  different  parties  of  no  moment,  some  papers  indorsed  by  Mr.  Stanton,  and 
some  with  his  initials  upon  them,  some  with  Cady  Stanton's  initials,  and  there 
were  other  papers,  the  importance  of  which  I  was  not  able  to  gather,  and  I  took 
them  out  one  day  and  asked  Mr.  Waddell,  who  was  a  clerk  in  that  office,  if  they 
were  likely  to  be  of  any  value,  and  he  thought  that  as  they  were  left  in  that 
way  they  were  probably  of  no  value.  I  did  not  destroy  them,  but  put  them 
back,  satisfied  that  they  were  of  no  or  little  value.  One  of  these  drawers  that 
I  speak  of  without  locks  was  in  the  upper  part  of  the  desk — a  long  drawer, 
right  in  the  middle.  In  that  I  had  looked  twice  before  carelessly,  and  I  drew 
it  out  to  see  what  loose  papers  M  ere  lying  there,  and  looked  them  over  to  see  if 
there  was  anything  there  of  value,  and  all  there  was  there  I  put  into  one  of 
these  side  drawers.    I  emptied  that  specially  to  put  my  own  private  papers  in, 


NEW  YORK  CUSTOM  HOUSE. 


251 


and  I  put  in  there  a  little  private  memorandum-book.  There  were  no  bonds  there 
then.  There  were  no  papers  in  it  of  any  value  whatever  at  this  time  of  my  exami- 
nation. I  had  occasion  some  time  after  this — about  a  month  after — I  remember  it 
perfectly  well — of  drawing  out  that  drawer  again,  and  there  was  nothing  in  it 
of  any  consequence.  There  was  nothing  there  1ml  a  .-ingle  piece  of  paper  and 
a  book  which  I  had  laid  there  myself,  and  I  shut  it  up  with  that  conviction. 
About  the  last  week  in  December  II.  B.  Stanton,  one  Saturday  afternoon,  came 
into  the  office  about  three  o'clock.  He  had  been  in  four  or  five  times  before, 
and  had  been  in  the  habit  of  conversing  with  Mr.  Waddoll,  and  had  had  the  privi- 
lege of  sitting  down  and  writing  at  the  desks,  some  little  attentions  or  politeness 
of  that  kind  being  extended  to  him.  This  time  that  I  speak  of  he  came  in  and 
said  to  me,  as  I  was  going  away,  (the  watchman  had  come  into  the  office  at  the 
time  with  his  broom  to  sweep,)  that  there  were  some  papers  left  in  those  drawers 
which,  probably,  were  of  no  value,  but  there  might  be  some  memorandum  of 
some  value  to  him,  and,  with  my  permission,  he  would  look  them  over.  I  told 
him  that  I  believed  there  was  nothing  of  value;  that  there  were  some  things 
with  his  initials,  and  he  sat  down  and  drew  them  out  and  looked  them  over 
carefully.  He  took  them  all  out  and  laid  them  on  the  top  of  the  desk.  While 
he  was  doing  that  I  left  the  room,  went  out  into  the  rotundo  and  into  the  water- 
closet,  and  was  gone  some  ten  minutes,  and  when  I  came  back  Mr.  Stanton 
was  just  leaving.  He  had  thrown  a  lot  of  papers  into  the  waste-basket.  ] It- 
said  there  was  nothing  there  of  any  importance.  All  the  drawers  that  had 
papers  relating  to  the  official  matters  of  the  bureau  were  locked  up,  and  I  had 
the  keys  in  my  pocket.  I  put  nothing  of  importance  in  drawers  which  had  no 
locks.  I  made  no  observation,  and  opened  no  drawer,  paid  no  attention  what- 
ever to  the  remark,  feeling  I  had  no  occasion  to  do  so  at  all,  and  left,  Mr.  Stan- 
ton also  leaving.  Mr.  Stanton,  I  think,  went  into  Mr.  Hanscom'^  proper  room. 
About  a  week  afterwards  (somewhere  about  the  first  week  in  January)  1  opened 
that  top  drawer  in  the  desk  again,  and  wras  surprised  to  see  some  papers  lying 
there.  I  lifted  them  out,  and  found  them  to  be  four  official  bonds,  duly  exe- 
cuted, as  I  found  when  I  examined  them,  indorsed  in  proper  form,  and  evidently 
belonging  to  the  bond  bureau.  I  was  surprised  at  the  circumstance,  turned  to 
Mr.  Waddell,  and  asked  him  if  he  could  explain  a  mystery  of  that  sort.  He 
threw  himself  back  with  some  surprise,  and  said  he  could  not.  He  took  the 
bonds;  saw  that  they  were  bonds  properly  belonging  to  the  files  in  the  office. 
I  immediately  took  them  into  Mr.  Hanscom's  room.  Mr.  Hanscom  was  nut 
there.  Mr.  Phillips  was,  and  Plaid  them  down  before  him.  He  started  at  once, 
and  said  that  was  very  strange;  that  these  bonds  they  had  just  reported  as 
missing  from  the  files.  He  asked  me  where  I  found  them,  and  I  told  him  how 
and  where  I  had  found  them. 

Question.  Do  you  remember  the  numbers  of  the  bonds  1 

Answer.  I  do  not. 

Question.  Do  you  remember  the  names  of  the  parties  who  gave  them  ? 
Answer.  Three  were  of  the  Hazard  Powder  Company,  and  one  was  Schepeler 

Question.  Do  you  remember  the  date  of  the  bonds — how  long  they  had  been 
executed  1 

Answer.  I  do  not. 

By  Mr.  Le  Blond : 

Question.  State  whether  the  bonds  were  found  after  the  examination  had 
been  made,  as  directed  by  Mr.  Barney  and  Mr.  Hanscom. 

Answer.  They  were  found  subsequently — after  the  report  of  the  missing 
bonds  had  been  made.  The  remark  made  by  Mr.  Phillips  to  me  when  I  laid 
the  bonds  on  his  desk  was,  those  bonds  have  been  reported  as  missing. 


252 


NEW  YORK  CUSTOM  HOUSE. 


Question.  Were  these  bonds  found  in  that  drawer  which  you  had  appropri- 
ated for  private  purposes,  and  which  had  no  lock  on  ? 

Answer.  Yes,  sir ;  it  was  exclusively  designed  for  private  purposes.  It  is 
my  rule,  and  the  rule  of  other  clerks,  to  put  no  official  papers  in  a  drawer  with- 
out a  lock. 

[The  four  bonds  in  question  being  produced,  the  witness  identified  them. 
They  are  as  follows  : 

No.  2605 — by  the  Glacier. — Schepeler  &  Co.,  Wm.  C.  Forbes,  Wm.  II eye, 
and  Frances  A.  Gale  ;  dated  April  25,  1863.   For  Havana;  amount,  $34,316  50. 

No.  1799 — by  the  Lizzie  Oakford. — The  Hazard  Powder  Company  and  Gus- 
tavus  Tuckerman,  dated  March  6,  1S63.    For  San  Francisco;  amount,  $1,860. 

No.  1714 — by  the  Lizzie  Oakford. — The  Hazard  Powder  Company  and  Gus- 
tavus  Tuckerman,  dated  February  23,  1863.  For  San  Francisco ;  amount, 
$4,880. 

No.  1970 — by  the  Lizzie  Oakford. — The  Hazard  Powder  Company  and  Gus- 
tavus  Tuckerman,  dated  March  16,  1863.    For  San  Francisco;  amount,  $694.] 

Question.  Upon  whose  certificate  is  the  bond  2605 — that  of  Schepeler  &  Co. — 
cancelled? 

Answer.  Upon  a  certificate  purporting  to  be  by  L.  Pierce,  jr.,  consul  at  Mat- 
amoras.    I  wrill  say  that  Mr.  Pierce  has  been  in  the  practice  for  the  past  six 
months  of  allowing  certificates,  for  the  purpose  of  cancelling  bonds,  to  come  to 
the  New  York  custom-house  purporting  to  be  signed  by  him,  which  have  notx 
been  written  or  signed  by  him.  with  no  procuration  and  no  indication  of  the  fact. 

Question.  How  do  you  know  that  he  permits  it  to  be  done?  May  it  not  be 
the  fraud  of  the  parties  wishing  their  bonds  cancelled  ? 

Answer.  They  may  be  fraudulently  obtained  or  executed.  The  indication 
that  they  are  permitted  by  Mr.  Smith,  is  the  single  fact  that  they  have  attached 
to  them  the  consulate  seal,  and  that  may  be  also  fraudulently  used.  I  detected 
this  irregularity  myself  in  the  bonds.  Incidentally  looking  over  the  bonds,  I 
observed  there  different  signatures  for  Mr.  Pierce. 

Question.  Are  you  acquainted  with  Mr.  Pierce's  signature? 

Answer.  Yes,  sir;  I  know  Mr.  Pierce's  signature  in  two  ways.  In  the  first 
place,  by  looking  at  the  old  bonds  which  have  been  cancelled  1  find  certificates 
signed  in  a  hand  differing  from  any  certificates  signed  more  recently,  and  cor- 
responding with  signatures  to  private  letters  written  by  Mr.  Pierce  to  parties  in 
this  city,  and  corresponding  with  what  the  State  Department  at  Washington 
have  certified  to  be  his  signature. 

Question.  Are  there  many  certificates  on  file  that  have  been  signed  by  other 
parties  than  Mr.  Pierce  ? 

Answer.  There  are  many  of  them. 

Question.  What  proportion  appears  to  be  signed  by  himself,  and  what  pro- 
portion by  other  parties  l 

Answer.  That  I  could  not  say,  but  the  greater  proportion  recently  of  certifi- 
cates that  have  been  presented  to  the  office  for  the  purpose  of  cancelling  bonds 
have  been  signed  by  other  parties  than  himself — much  the  greater  proportion. 

Question.  For  how  long  a  period  has  this  been  going  on? 

Answer.  That  I  can  only  answer  by  conjecture.  I  should  think  six  months, 
certainly. 

Question.  Has  the  Secretary  of  State  been  informed  of  this  irregularity  in 
the  transaction  of  this  business  ? 

Answer.  He  has ;  he  was  informed  by  Mr.  Hanscom,  the  deputy  of  our  de- 
partment. 

Question.  How  long  since  ? 

Answer.  Last  month — in  March. 

Question.  Has  any  action  been  taken  with  reference  to  Mr.  Pierce  ? 


NEW  YORK  CUSTOM  HOI'SK. 


253 


Answer.  In  the  information  given  to  Mr.  Seward,  three  signatures  purporting 
to  be  Mr,  Pierce's  were  sent  on  to  Washington.  Mr.  Seward  returned  them  to 
the  collector,  with  the  statement  that  two  of*  them  were  not  Mr.  Pierce's,  that 
one  of  them  was,  and  the  two  that  were  not  by  Mr.  Pierce  were  not  to  be  ac- 
cepted, and  that  he  had  written  to  Mr.  Pierce  for  an  explanation. 

Question.  Mow  long  since  was  this  I 

Answer.  Two  weeks,  I  should  think. 

Question.  Have  you  examined  the  bonds  prior  to  the  removal  of  Mr.  Stanton, 
to  see  whether  they  were  certified  in  like  manner  ? 

Answer.  I  have  not  for  that  purpose.  My  attention  has  been  more  directed 
to  those  that  have  come  under  my  own  observation.  Certificates  were  coming 
in  pretty  fast  for  the  purpose  of  cancelling  those  Matamoras  bonds,  and  I  ob- 
served that  the  signatures  did  not  correspond,  and  evidently  were  not  written 
by  the  same  person.  I  presented  the  matter  to  the  collector,  and  he  determined 
to  reject  the  whole  until  further  orders  from  the  department. 

Question.  Do  you  meet  with  the  like  difficulty  from  any  other  foreign  port  ? 

Answer.  No  other. 


New  York,  April  11,  18G4. 

F.  J.  Phillips  sworn. 

By  the  chairman  : 

Question.  Are  you  connected  with  the  custom-house  1 

Answer.  Yes,  sir. 

Question.  For  how  long  a  time? 

Answer.  Something  like  two  years. 

Question.  With  what  bureau  or  department  \ 

Answer.  I  have  been  connected  with  the  seizure  bureau  since  August  last; 
that  is  the  bureau  in  which  Mr.  Ward  is  at  present,  (tenth  division.) 

Question.  By  instructions  did  you  at  any  time  examine  the  condition  of  the 
desk,  drawers,  &c,  formerly  occupied  by  Mr.  Stanton,  deputy  collector  1 

Answer.  In  connexion  with  Mr.  Hanscom  I  made  an  examination  of  the  con- 
dition of  the  bonds  at  that  time.  Mr.  Barney  desired  him  to  make  an  exami- 
nation, and  he  gave  the  matter  into  my  charge. 

Question.  Is  this  list  made  out  by  you? — (showing  witness  exhibit  marked  S.) 

Answer.  It  is  a  copy  of  the  examination  made  by  me. 

Question.  WThat  time  was  it  that  this  examination  was  made  ? 

Answer.  The  examination  was  made  

Question.  Did  you  yourself  make  an  examination,  or  search,  in  this  bureau  for 
missing  bonds  ? 

Answer.  I  made  an  examination  myself  in  one  of  the  desks  in  which  I  be- 
lieve Mr.  Ward  afterwards  found  some  bonds,  but  at  that  time  I  did  not  find 
any. 

Testimony  of  Ezra  P.  Cuyler. 

New  York,  April  12,  1864. 

Ezra  P.  Cuyler  sworn. 

By  the  chairman  : 

Question.  Where  do  you  reside? 
Answer.  City  of  New  York. 
Question.  How  long  have  you  resided  here? 
Answer.  Since  the  3d  of  October  last  ? 


254 


NEW  YORK  CUSTOM  HOUSE. 


Question.  Whore  did  you  reside  before  that? 

Answer.  For  the  last  five  months  preceding  that  at  Nassau;  previous  to  that 
time  at  Charleston,  South  Carolina. 

Question.  While  you  were  in  Nassau  what  was  your  occupation,  profession, 

or  business  ? 

Answer.  I  was  a  gentleman  of  leisure ;  I  was  waiting  to  get  my  wife  out  of 
Dixie. 

Question.  How  long  did  you  reside  at  Nassau? 
Answer.  Five  months. 

Question.  Do  you  know  tlfb  American  consul  there? 

Answer.  Yes,  sir;  his  name  is  Hanley ;  I  know  Mr.  Thompson,  the  vice-con- 
sul, who  does  the  business. 

Question.  Do  you  know  anything  about  the  receiving  of  goods  there  and 
giving  of  consuls'  certificates,  and  of  the  destination  of  goods,  &c.  ? 

Answer.  I  know  that  there  has  been  a  large  increase  of  imports  into  that 
country,  particularly  at  the  port  of  Nassau,  and  I  know  the  means  they  have 
of  gettiiig  those  goods  away,  where  they  go  to,  and  where  they  came  from. 

Question.  The  committee  would  be  pleased  to  have  you  give  them  a  state- 
ment of  what  you  may  know  upon  this  subject. 

Answer.  A  large  portion  of  the  goods  received  at  that  island  are  generally 
bought  in  New  York  through  commission  agents,  and  they  are  cleared  for  the 
outer  islands — Green  Turtle,  Harbor  island,  or  Rum  Cay  island.  They  are 
cleared  from  this  port  in  the  first  place,  and  are  generally  entered  at  those  outer 
islands.  They  then  take  a  clearance  from  there,  break  bulk,  and  go  directly  to 
Nassau,  and  there  they  discharge  and  pay  duties  in  thirty  days  after  the  vessel 
reaches  the  port.  The  bond  for  that  is  given  at  the  port  where  she  outers. 
These  goods,  you  see,  require  no  consular  certificate  at  all  from  the  American 
consul,  because  they  come  from  an  English  port  to  an  English  port.  The  ves- 
sel only  needs  to  make  her  entry  in  the  custom-house  to  discharge  her  cargo  at 
once.  When  the  goods  leave  New  York  directly  for  Nassau,  there  the  certifi- 
cate of  the  American  consul  is  necessary  for  the  cancellation  of  the  bonds,  but 
on  a  large  portion  of  the  goods  that  go  to  Nassau  the  bonds  are  never  can- 
celled. I  know  of  instances  where  forged  certificates  have  been  made  and  sent 
on  lu  re  for  the  purpose  of  cancelling  bonds,  and  bonds  have  been  cancelled  by 
these  forged  certificates. 

Question.  Who  makes  these  forged  certificates  ? 

Answer.  I  think  it  is  George  Hayning. 

Question.  How  does  he  get  the  consular  seal? 

Answer.  He  does  not  put  the  consular  seal  on  to  them.  It  is  a  sort  of  land- 
ing certificate.  The  largest  portion  of  the  goods  that  go  to  Nassau  are  landed 
in  bond,  (hardly  any  of  them  ever  pay  duties,)  and  then  they  are  sold  in  bond. 
They  simply  pay  a  few  duties  to  the  custom-house  for  an  order  to  take  the 
goods  from  the  bonded  warehouse.  Almost  everybody  there  owns  a  bonded 
warehouse,  and  every  old  barn  and  rookery  is  now  a  bonded  warehouse.  They 
will  turn  up  some  old  boat  or  an  old  hull  for  the  purpose  of  holding  these  goods  ; 
then  they  give  a  receipt  for  them  and  away  they  go. 

By  Mr.  Le  Blond  : 

Question.  From  the  location  of  the  office  of  the  American  consul,  (Mr.  Thomp- 
son,) is  it  possible  for  goods  to  be  shipped  from  New  York  to  Nassau  and  tran- 
shipped for  blockade  running,  without  the  fact  corning  to  his  knowledge  ? 

Answer.  No,  sir  ;  they  could  not  land  anything  at  all  without  his  positive 
knowledge.  The  vessels  come  right  under  his  eyes  ;  his  office  is  right  in  front 
of  the  wharf.  He  does  not  make  any  acquaintance  with  anybody,  and  he  has  a 
morose  and  sour  disposition,  and  I  consider  him  a  very  unfit  person  for  the  po- 
sition he  occupies. 


NEW  YORK  CUSTOM  HOUSE 


255 


Question.  While  you  were  staying  there  were  ships  loaded  with  goods  to  run 
the  blockade  along  the  landing  in  front  of  his  office? 
Answer.  Every  one  of  them. 
Question.  Openly  and  knowingly  ? 
Answer.  Yes,  sir. 

Question.  Is  it  a  notorious  thing  in  Nassau  that  he  has  a  full  knowledge  of 
these  things  1 

Answer.  Yes,  sir;  there  is  not  a  vessel  that  leaves  Nassau  without  his  know- 
ledge ;  it  would  be  an  impossibility  for  a  vessel  to  discharge  or  take  in  a  cargo 
there  without  the  knowledge  of  the  American  consul. 

Question.  Is  this  constantly  occurring  ? 

Answer.  Yes,  sir,  day  after  day. 

Question.  From  the  best  information  you  have  been  able  to  obtain,  how  much 
has  the  trade  at  Nassau  increased  since  the  rebellion,  compared  with  what  it 
was  before  that  time  ? 

Answer.  The  duties  in  the  custom-house  at  Nassau  have  increased  from  four 
hundred  pounds  quarterly,  to  the  neighborhood  of  three  thousand  pounds  ;  they 
were  deeply  involved  in  debt  there  before  this  war  commenced,  but  now  they 
have  got  so  much  money  that  they  are  building  a  large  hotel. 

Question.  What  is  the  size  of  the  island  ? 

Answer.  It  contains  8,000  inhabitants,  and  it  is  about  six  miles  long  and  four- 
teen miles  wide. 

Question.  Is  it  a  daily  or  weekly  occurrence  for  vessels  to  come  there  and 
load  directly  for  the  southern  confederacy? 
Answer.  Yes,  sir — knowingly  and  openly. 

Question.  Has  the  confederate  government  regular  agents  at  Nassau  for  the 
purpose  of  buying  produce,  munitions  of  war,  and  everything  else  they  need  in 
the  southern  confederacy? 

Answer.  Yes,  sir;  there  is  Major  Lewis  Heighlegher,  a  regular  confederate 
agent,  who  has  a  commission  in  the  confederate  army;  and  then  there  is  John 
B.  Lafitte,  the  agent  for  John  Frasier  &  Co.,  who  are  the  agents  of  the  confede- 
rate government  in  Liverpool ;  and  there  are  sub-agents. 

Question.  Is  the  position  and  business  of  this  man  Lafitte  known  to  the 
American  consul? 

Answer.  Yes,  sir  ;  he  has  all  the  appurtenances  belonging  to  an  agent  of  the 
confederate  government,  except  the  flag. 

Question.  Is  the  American  consul  on  friendly  terms  or  relations  with  him  ? 
Answer.  Not  to  my  knowledge. 

Question.  What  American  vessels  have  gone  from  the  port  of  New  York  with 
goods  that  were  sold  to  the  agent  of  the  confederate  government,  at  the  time  you 
were  there  ? 

Answer.  I  don't  know  that  I  can  answer  what  American  vessels  have  done 
so,  because  it  is  so  seldom  that  the  American  flag  comes  in  there  with  goods. 
Former  American  vessels,  but  carrying  the  British  flag  now,  have  been  repeat- 
edly in  there.  I  do  not  know  that  I  can  give  you  a  regular  list  of  names.  There 
is  the  schooner  "  John  G." 

Question.  Where  was  she  owned  ? 

Answer.  She  was  owned  in  Nassau,  by  a  man  by  the  name  of  Darren ;  and 
then  there  was  the  schooner  "  J.  C.  Itahming,"  owned  by  Raymond  &  Co. ;  he  is 
from  New  York  and  Nassau  both,  and  is  a  commission  merchant;  that  vessel 
carried  the  British  flag;  I  do  not  believe  that  he  is  an  American  citizen. 
Question.  Are  any  of  the  officers  of  that  vessel  American  citizens  ' 
Answer.  I  don't  know  that  they  are.  Then  there  is  the  «•  Wild  Pigeon," 
owned  by  Sawyer  and  Menendez  ;  then  there  is  the  schooner  "  Albert,"  owned 
by  Sanders  &  Son,  of  Nassau;  there  is  the  schooner  "Shannon,"  Captain 
Roberts,  owned  by  Johnson,  of  Nassau. 


256 


NEW  YORK  CUSTOM  HOUSE. 


Question.  Where  did  these  vessels  chiefly  get  their  goods  that  they  shipped 
to  Nassau  I 

Answer.  In  New  York  city,  and  they  were  chiefly  bought  by  Joseph  Eneas, 
John  C.  Rahming,  Henry  Darrell  &  Co.,  Pearl  street,  Josiah  Mason  &  Sons, 
Mantel!  &  Barton,  Lewis  Benjamin  and  James  Douglass. 

Question.  How  do  you  know  that  they  were  bought  by  these  men  1 

Answer.  I  know  it  from  personal  knowledge  in  one  way,  and  from  conversa- 
tions with  captains  of  schooners,  consignees,  and  residents  of  Nassau,  in  another 
way.  I  know  who  their  agents  are  here.  I  have  been  told,  and  made  myself 
acquainted  with  the  manner  in  which  the  goods  were  brought,  and  from  the  gen- 
eral conversations  I  have  had  with  parties  there  about  business  matters,  I  know 
who  their  agents  here  are. 

Question.  Have  you  had,  at  any  time,  any  conversation  with  the  American 
consul  in  reference  to  these  matters? 

Answer.  With  the  original  American  consul  I  had — Mr.  Ilanlcy. 

Question.  Where  is  he  now  ? 

Answer.  At  New  Orleans. 

Question.  Have  you  ever  had  any  conversation  with  Mr.  Thompson  upon  this 
subject  ? 

Answer.  No,  sir;  he  would  never  talk  with  me  about  it. 

Question.  Was  lie  upon  friendly  terms  witli  any  of  these  shippers  that  you 
have  mentioned  here  ? 

Auswer.  I  don't  think  that  he  was  ;  only  I  think  he  has  given  free  permits  to 
parties,  but  he  has  been  misled.  The  goods  were  shipped  as  stores  for  the  Royal 
Victoria  lintel,  but  they  were  naturally  goods  that  run  the  blockade.  Mr. 
Thomps  >n,  the  steward  of  the  hotel,  went  to  Mr.  Thompson,  the  consul,  and  got 
a  permit  to  pass  these  goods  on  the  ground  that  they  were  for  the  hotel. 

Question.  Has  that  been  carried  on  to  any  extent  ? 

Answer.  In  small  quantities. 

Question.  Do  you  know  of  any  parties  heve  in  New  York  who  are  acting  as 
agents  here,  and  buying  goods  for  parties  in  Nassau,  to  be  shipped  into  the  Con- 
federate States  ?  From  the  fact  of  your  long  stay  there,  and  your  acquaintance 
with  parties  there,  you  must  know  something  about  the  final  destination  of  these 
goods. 

Answer.  I  do  know  parties  who  have  been  doing  this  kind  of  business  here, 
and  who  will  probably  do  it  again.  One  of  the  principal  parties  is  Mantell  & 
Barton,  who  have  been  engaged  in  this  trade  to  Bermuda;  and  these  other  parties 
whose  names  I  have  already  given  you — Douglass,  Mason,  Eneas  and  Rahming — 
have  been  enraged  in  this  trade  to  Nassau.  They  give  a  consumption  bond, 
knowing  that  when  they  take  an  oath  that  these  goods  would  be  consumed  there 
they  commit  perjury,  for  it  is  utterly  impossible  that  these  goods  could  be  con- 
sumed there,  from  the  enormous  increase  of  trade  since  1S60,  and*  increase  of 
shipping,  with  no  corresponding  increase  of  population.  For  instance,  blankets 
and  railroad  iron  are  never  used  there. 

Question.  Have  there  been  blankets,  railroad  iron,  telegraph  wire,  sabres,  pis- 
tols, powder,  &c,  in  large  quantities  shipped  from  New  York  to  Nassau,  and 
transhipped  to  the  Confederate  States? 

Answer.  I  have  known  all  these  articles  to  be  shipped  from  New  York  to  Nas- 
sau within  the  time  I  was  there;  I  have  seen  them  on  the  wharf  myself;  I  could 
not  tell  you  the  names  of  the  vessels  that  took  them ;  the  Wild  Pigeon  as  much 
as  any  of  them  ;  she  probably  carried  more  goods  of  this  character  than  any  other 
vessel  going  to  that  port;  she  is  owned  by  Joseph  Eneas,  who  is  agent  and 
part  owner.  Sawyer  &  Menendez,  at  Nassau,  are  agents  and  owners  of  vessels 
in  this  trade.  A  great  many  vessels  have  gone  away  with,  and  have  carried 
tilings  that  were  never  on  the  manifest  at  all,  but  were  put  on  board  by  the  con- 


NEW  YORK  CUSTOM  HOUSE.  257 

nivance  of  somebody  after  they  were,  cleared.  I  knew  of  thirty  hundred  thou- 
sand needles  in  one  lot,  by  the  schooner  Shannon. 

Question.  By  whom  were  those  articles  purchased  and  Bhipped  I 

Answer.  That  I  don't  know  ;  I  knew  when  tin;  schooner  came  there.  The 
captain  told  me  so  in  conversation  with  him. 

Question.  Did  lie  tell  you  the  parties  who  shipped  them,  or  the  manner  in 
which  it  was  done  ? 

Answer.  No,  sir;  tin's  was  in  June. 

Question.  Give  us  all  the  information  you  can  about  Mr.  Benjamin  and  hie 
traffic  with  the  residents  of  Nassau. 

xVnswer.  He  consigns  goods  to  George  and  J.  E.  Woolf,  and  receives  remit- 
tances from  them;  this  1  know  from  conversation  with  Woolf  himself.  These 
parties  are  doing  a  large  business,  selling  goods  directly  t<>  the  Confederate 
States  that  come  from  New  York.  Not  only  that,  but  I  have  heard  these  same 
parties  offer  to  ship  anything  out  of  New  York  that  they  could  get  an  order 
for,  and  Mr.  Chaulker,  in  the  surveyor's  office,  was  the  Tom  dunes  they  said 
they  could  get  any  d — d  thing  they  chose  from.  He  is  a  man  that  works  on  a 
small  salary  and  lives  on  a  very  large  salary,  and  he  has  been  in  some  way  con- 
nected with  Benjamin,  Hoffnung  &:  Woolf.  I  heard  Woolf  myself  say,  in 
Nassau,  that  the  way  they  generally  managed  was  to  get  their  goods  cleared 
from  Jersey,  and  they  could  get  any  d — d  thing  from  Chaulker  they  wanted. 
Woolf  offered  to  furnish  the  confederate  government  ten  locomotives,  il*  he  could 
get  the  order;  that  he  could  get  them  shipped  ;  I  heard  him  say  this  on  the 
Corsica,  when  I  came  with  him  on  that  steamer.  I  have  had  an  intimate 
acquaintance  with  the  Woolfs,  and  have  talked  with  them  in  regard  to  business, 
and  they  say  that  Benjamin  is  their  agent  here;  all  their  letters  have  been 
directed  to  him,  and  all  their  business  has  been  done  through  him.  1  was  taken 
in  and  introduced  to  Benjamin  by  Mr.  Hofmung ;  Mr.  Hoffnung  t  »ld  me  in  the 
theatre,  and  also  in  his  own  office,  that  he  had  shipped  400  pairs  of  blanket-  to 
Nassau  by  the  steamer  Belle  Vernon  ;  that  they  were  bought  here  in  bond,  and 
be  boasted  that  he  had  got  them  cleared,  and  he  wanted  me  to  buy  some.  He 
offered  to  do  my  business  in  the  blockade  line  if  1  wanted  to  engage  in  the 
business. 

Question.  Have  you  had  any  conversation  with  Benjamin  upon  this  subject  I 
AnsAver.  Not  but  a  little,  in  his  office. 

Question.  Did  he,  in  any  conversation  with  you,  ever  admit  that  he  \ras 
buying  goods  for  these  parties  m  Nassau,  or  that  he  was  in  anywise  interested 
in  the  transhipment  of  the  goods  to  the  Confederate  States? 

Answer.  Not  himself ;  he  only  offered  to  buy  and  ship  goods  for  me. 

Question.  To  be  shipped  to  the  Confederate  States  1 

Answer.  He  knew  that  I  was  from  Charleston.  There  is  another  man  by 
the  name  of  Samuel  Myers,  who  has  got  a  son-in-law,  Israel  Woolf,outat  Nass  u. 
to  whom  he  always  ships.  Woolf  spoke  to  a  man  by  the  name  of  Tansell,  bo 
came  on  here  to  Myers,  and  Myers  opened  a  shipping  office. 

Question.  Do  you  know  what  articles  Benjamin  has  bought  and  sent  to 
Nassau  1 

Answer.  Everything  in  the  line  of  ordinary  dry  goods,  Yankee  notions, 
medicines,  perfumery,  jewelry,  domestic  and  heavy  goods,  groceries,  cVc.  I 
have  known  these  parties  who  shipped  goods  from  here  to  Nassau  to  have  BO 
many  to  sell  that  they  have  often  shipped  them  to  Bermuda,  to  supply  the  blockade 
runners  there.  1  have  known  Woolf  to  be  in  New  York  and  in  close  connexion 
with  these  parties  here. 

By  the  chairman : 

Question.  Do  you  know  anything  about  goods  1  eing  shipped  to  Matamorae  \ 
Answer.  I  only  know  of  goods  being  shipped  there  from  conversation  with  a 
H.  Rep.  Com.  111—17 


t 

258 


NEW   YORK  CUSTOM  HOUSE. 


gentleman  who  is  intimate  with  0.  K.  King  &  Co..  and  from  the  bonds  and 
manifests  that  go  through  the  custom-house  here.  King  &  Co.,  in  1S61,  were 
probably  not  worth  825,000,  and  a  party  tells  me  that  they  arc  now  worth 
8300,000;  that  O.  K.  King  himself  is  in  Matamoras,  and  Mr.  James  J.  King 
ships  him  large  quantities  of  goods.  The  goods  are  shipped  in  the  name  of  O. 
K.  King  cV.  Co.,  and  O.  K.  King  becomes  one  of  the  sureties,  and  he  has  now 
got  bonds  in  the  custom-house  in  large  excess  of  the  property  he  could  possibly 
have,  some  of  which  are  not  cancelled,  and  some  that  he  cannot  get  cancelled. 
Only  a  few  days  ago  they  passed  goods  through  the  custom-house  to  the  amount 
of  890,000,  and  right  on  the  top  of  this,  only  day  before  yesterday,  they  and 
another  house  shipped  30,000  pounds  of  lard  to  a  hot  climate. 
Question.  Was  it  probed? 

Answer.  I  made  a  fuss  about  it,  and  they  went  down  and  stuck  it. 
Question.  What  is  the  object  of  that  shipment  ? 

Answer.  It  goes  into  the  Confederate  States  ;  they  have  got  no  pork.  Mentell 
&  Burton  also  ship  goods  to  Matamoras.  They  bring  in  manifests  to  a  very 
extraordinary  amount,  of  all  classes  of  goods,  day  after  day,  and  give  the  same 
security  right  over  and  over.  They  have  had  some  correspondence  with  the 
Secretary  of  the  Treasury,  or  some  officer  at  Washington,  and  they  are  now 
trying  to  see  if  they  cannot  pass  goods  through  the  custom-house  on  personal 
security. 

Testimony  of  Gustavus  Centan. 

Wednesday,  March  2,  186  4. 

Gustavus  Centan,  sworn  and  examined. 
By  the  chairman  : 

Question.  You  have  been  a  custom-house  broker,  I  believe  ? 

Answer.  Yes,  sir,  on  and  off;  have  acted  sometimes  as  principal  and  some- 
times in  connexion   with  others;  have  been  in  the  business  since  about  1852. 

Question.  Will  you  explain  briefly  what  it  is  to  be  a  custom-house  broker  ? 

Answer.  To  transact  custom-house  business  for  merchants;  to  save  them 
trouble  in  making  entries,  obtaining  permits,  and  taking  out  goods. 

Question.  Were  you  associated  with  Mr.  Pride  awhile  ? 

Answer.  No,  sir;  I  was  to  have  taken  Mr.  Pride's  place  for  two  weeks  during 
his  absence  in  Canada.  I  had  been  in  his  office  for  a  week  previous,  and  the 
very  time  I  was  to  take  charge  of  his  office  he  died. 

Question.  His  son  was  for  a  limited  period  with  you  ? 

Answer.  He  asked  me  to  go  on  with  the  business;  I  told  him  I  would  take 
charge  of  the  business,  and  if  it  paid  so  as  to  allow  me  to  see  my  way  clear 
through  his  father's  business  I  would  give  him  an  interest  in  it. 

Question.  Was  not  there  an  entrance  made  into  the  office  by  some  one  con- 
nected with  the  custom-house  and  papers  taken? 

Answer.  Yes,  sir. 

Question.  When  ? 

Answer.  About  the  9th  or  10th  of  November,  1S62. 
Question.  What  was  the  cause  of  it  1 

Answer.  I  presume  it  was  on  account  of  some  information  lodged  against 
me;  I  never  found  out  distinctly.  I  was  accused  of  taking  invoices  from  the 
custom-house — a  thing  of  which  I  was  perfectly  innocent.  That  was  merely  a 
pretext,  as  I  suppose,  for  making  a  descent  upon  the  office. 

Question.  They  found  some  papers  ? 

Answer.  They  found  a  lot  of  invoices  in  Mr.  Pride's  pigeon-hole.  I  had  put 
away  all  these  old  papers  in  a  box,  and  left  them  in  the  pigeon-hole  as  they 


NEW  YORK  CUSTOM  HOUSE. 


2  ."9 


were,  intending  as  soon  as  the  son  had  taken  out  letters  of  administration  to 
give  the  whole  concern  to  him.  Among  others,  they  found  a  large  lot  of 
invoices  of  Solomon  Herst  &  Co.,  covering  a  time  since  1854.  It  is  more  than 
likely  that  Mr.  Pride  asked  for  an  invoice,  and  the  clerk  gave  him  the  whole 
pile.  The  papers  were  found  there.  In  the  first  place,  I  had  nothing  to  do 
with  Solomon  Herst  &  Co.;  in  the  second  place,  I  had  nothing  to  do  with  Mr. 
Pride's  office. 

Question.  Have  you  ever  obtained  invoices  in  that  manner  from  the  custom- 
house 1 

Answer.  I  have  obtained  invoices  from  the  custom-house,  but  through  other 
parties;  personally  I  have  never  taken  one  from  the  custom-house.  There 
used  to  be  a  young  man  by  the  name  of  Betts  around  the  custom-house  who 
did  that:  he  had  been  connected  with  the  invoice  department  for  a  number  of 
years,  but  had  been  dismissed  on  change  of  the  administration,  and  then  he 
took  to  brokerage;  he  knew  all  about  the  invoice  department,  and  I  presume 
some  of  his  friends  were  retained  who  were  in  charge  of  the  invoice  department, 
and  in  that  way  lie  probably  got  them. 

Question.  What  did  you  pay  him  when  he  got  invoices  for  you  ? 

Answer.  Sometimes  I  would  give  him  a  dollar;  sometimes  two  or  three 
dollars;  sometimes  he  would  tell  me  that  it  would  cost  him  so  much,  and  I 
would  give  it  to  him. 

Question.  When  these  invoices  were  obtained  by  you  in  this  way,  were  they 
retained  by  you  ? 

Answer.  No,  sir;  I  destroyed  them.  I  kept  them  for  a  number  of  years — up 
to  the  time  of  this  descent  upon  my  office.  I  went  to  my  house  and  put  the 
whole  of  them  in  the  fire. 

By  Mr.  Rollins : 

Question.  What  was  the  object  in  securing  these  invoices  ? 

Answer.  I  was  given  to  understand  by  the  parties  whom  I  had  interested 
with  me  that  unless  the  invoices  could  be  produced  there  could  never  be  a 
prosecution  instituted. 

Question.  The  invoice  had  to  be  produced  in  order  to  make  an  accusation 
upon,  so  that  if  you  could  secure  the  invoice,  the  government  would  not  be 
able  to  commence  a  suit  for  any  violation  of  the  revenue  laws  ? 

Answer.  That  was  the  idea. 

Question.  Were  the  merchants  for  whom  you  obtained  these  invoices  aware 
of  your  mode  of  obtaining  them  ? 

Answer.  A  good  many  of  them  were. 

Question.  They  were  parties  to  the  transaction  ? 

Answer.  Some  of  them  were,  and  some  of  them  were  not. 

Question.  Can  you  give  us  the  names  of  any  parties  that  were  ? 

Answer.  I  cannot  very  well  now.  I  made  a  long  statement  of  these  things 
a  year  and  a  half  ago;  these  papers  are,  as  I  understand,  in  the  district 
ttorney's  office. 

Question.  Who  did  you  make  your  statement  to  ? 

Answer.  To  some  one  who  was  a  partner  of  Mr.  Denison — Mr.  Starr.  1 
was  arrested  and  kept  four  days  and  four  nights  without  seeing  any  of  my 
friends— my  folks  being  in  great  distress,  running  round  to  one  place  and 
another,  trying  to  find  where  I  was.  I  finally  got  Mr.  Young,  of  the  detective 
police,  to  take  a  letter  over  to  Brooklyn  to  my  family  to  let  them  know  where 
I  was. 

Question.  Who  arrested  you? 

Answer.  I  was  arrested  on  a  warrant  of  one  of  the  United  States  commis- 
sioners— Mr.  White. 

Question.  Where  were  you  taken  ? 


2G0 


Ni:\V  YORK  CUSTOM  HOUSE. 


Answer.  At  the  office,  No.  7  Broad  street,  and  was  taken  to  the  United 
States  marshal's  office,  and  they  pretended  there  that  they  could  not  find  the 
commissioner.  It  was  Wednesday  when  I  was  arrested,  and  I  never  saw  any- 
body until  the  following  Monday. 

Question.  Who  did  you  see  then  ? 

Answer.  Mr.  James  .Maury,  the  lawyer  who  was  employed  by  me  upon  the  re- 
commendation of  some  of  these  parties,  never  came  near  me.  At  twelve  o'clock 
at  night,  between  Sunday  and  Monday,  a  party  came  in,  just  as  1  was  taking  a 
sleep  on  a  board,  with  pen,  ink,  and  paper,  and  says,  "You  know  what  these 
parties  want,  and  you  had  better  tell."  I  wrote  a  few  lines  to  Mr.  Franklin  and 
Mr.  Denison,  saying  to  them  that  if  they  would  give  me  the  privilege  of  seeing 
some  of  my  friends  I  would  make  such  admissions  as  they  wanted  with  some 
reservations  for  people  I  got  into  trouble  without  their  knowing  it.  I  told  my 
Lawyer  that  otherwise  I  would  not  say  a  word.  These  reservations  were  not 
made.    They  promised  everything  1  wanted,  and  that  was  the  last  I  heard  of  it. 

Question.  Did  you  have  an  interview  with  any  of  the  custom-house  officials  ? 

Answer.  Not  until  the  f  Rowing  day. 

Question.  Who  then  did  you  see  1 

Answer.  I  met  Mr.  Franklin  and  afterwards  Mr.  Denison  ;  we  had  some 
little  talk. 

Question.  What  did  he  say  to  you  ? 

Answer.  He  went  right  away  from  my  lawyer's  over  to  Mr.  Starr's  office, 
and  there  they  got  up  this  affidavit. 

Question.  What  did  Mr.  Franklin  say  to  you  1 

Answer.  They  told  me  they  would  do  everything  they  had  agreed  to  do  ; 
that  they  would  leave  off  one  or  two  names  that  I  suggested. 
Question.  Did  they  use  any  severe  language  towards  you  ? 
Answer.  Not  then. 
Question.  Did  they  at  any  time  ? 

Question.  Yes,  sir ;  of  course,  they  theatened  my  father,  brother,  and  all  my 
relations  generally  with  imprisonment. 

Question.  What  did  they  accuse  you  of  having  done  ? 

Answer.  Of  taking  invoices. 

Question.  Did  you  make  a  full  confession  % 

Answer.  No,  sir,  not  until  five  or  six  days  after  ;  I  did  as  near  as  I  could  at 
that  time,  always  reserving  these  two  names.  It  did  not  do  me  any  good  to  re- 
serve them,  for  they  came  down  upon  them  afterwards  and  got  all  the  money 
they  could  out  of  them  ;  one  was  Mr.  Thompson,  (of  the  firm  of  Le  Brun  & 
Thompson,)  my  brother-in-law,  who  was  perfectly  innocent.  They  haye 
pushed  that  house  badly  ever  since  by  keeping  back  their  invoices  two  or  three 
weeks. 

Question.  You  say  they  got  money  out  of  this  concern  :  did  they  get  any 
money  out  of  you  1 

Answer.  No,  sir ;  I  did  not  have  any  for  them  to  get. 

Question.  Does  this  practice  of  obtaining  invoices,  such  as  you  have  spoken 
of,  continue  yet  ? 

Answer.  Not  that  I  am  aware  of. 

By  Mr.  Rollins: 

Question.  Do  you  consider  that  the  abstraction  by  a  custom-house  broker  o 
invoices  for  the  purpose  indicated  by  you  is  a  legitimate  and  proper  business 
Answer.  No,  sir;  I  do  not  consider  it  in  that  way  at  all. 
Question.  Then  you  consider  it  wrong  1 

Answer.  I  considered  it  wrong,  but  I  was  employed  by  a  custom-house  offi- 
cial to  do  it;  it  was  done  at  the  instigation  of  one  of  the  clerks  in  the  cus- 
tom-house 


NEW  YORK  CUSTOM  HOUSE. 


201 


Question.  Who  was  tlie  clerk  ? 

Answer.  J.  II.  Van  Vechten.  I  had  half  a  dozen  examiners  in  my  favor 
who  passed  all  the  goods. 

Question.  You  say  a  clerk  suggested  this  to  you? 
Answer.  Yes,  sir. 

Question.  I  understood  you  to  be  acting  in  the  interest  of  the  merchants  ? 

Answer.  I  was  acting  in  their  interest ;  1  had  this  entry  clerk  in  with  me 
who  was  interested  with  both  ;  he  brought  me  the  papers  from  the  merchants  ; 
I  did  not  know  them,  and  I  do  not  know  them  to  this  day,  except  by  name. 

Question.  Y"ou  then  did  this  business  at  the  suggestion  of  a  clerk  in  that 
department  for  the  benefit  of  the  merchants — the  merchants  not  coming  to  you 
in  person,  but  the  clerk  requesting  you  to  do  the  business  \ 

Answer.  In  some  cases,  but  not  in  all;  in  some  cases  I  had  dealings  with  tho 
merchants  directly;  in  other  cases  I  went  upon  my  own  responsibility,  without 
the  merchants  coming  to  me  with  Mr.  Van  Vechten. 

Question.  What  number  of  abstractions  of  invoices  were  made  do  you  think  ? 

Answer.  I  have  no  idea  at  all. 

By  Mr.  Le  Blond  : 

Question.  You  speak  of  some  examiners  connected  with  this  matter  of  the 
abstraction  of  invoices. 

Answer.  Yes,  sir;  they  were  also  removed;  Mr.  Eels  and  Mr.  Griggs,  one  on 
the  English  floor  and  one  on  the  French  floor. 

By  the  chairman  : 

Question.  You  say  that  of  late  there  has  nothing  of  this  kind  transpired  to 
your  knowledge  1 

Answer.  Not  to  my  knowledge  ;  since  that  time  I  have  retired  entirely  from 
the  business ;  of  course,  everything  was  ruined ;  my  legitimate  and  ille- 
gitimate business  spoiled. 

Question.  Do  you  know  of  any  one  connected  with  the  custom-house  who  is 
or  has  been  in  the  practice  of  reserving  money  for  favors  shown  to  merchants  ] 

Answer.  I  do  not,  of  my  own  knowledge — nothing  but  hearsay  rumors.  I 
have  heard  it  said  that  there  was  just  as  much  going  on  as  ever — that  was  the 
expression. 

Question.  Do  you  know  Avho  are  spoken  of  in  that  connexion  ? 

Answer.  I  could  not  give  you  the  names.  Every  time  the  subject  is  men- 
tioned, I  generally  tell  the  person  that  it  is  a  very  unpleasant  thing,  and  I 
don't  want  to  know  anything  about  it  at  all. 

By  Mr.  Rollins  : 

Question.  Can  goods  be  passed  now  fraudulently  through  the  custom-house 
without  their  paying  the  proper  duties  ? 
Answer.  Yes,  sir. 
Question.  How  1 

Answer.  I  notify  my  foreign  correspondent  in  Europe  to  pack  the  cases  in 
a  certain  manner  and  notify  me  of  the  contents  of  some  peculiar  case,  and  I  then 
know  which  cases  are  right  and  which  are  wrong. 

Question.  In  short,  which  of  the  cases  correspond  with  the  invoice  and  which 
do  not  ? 

Answer.  Yres,  sir ;  I  can  secure  the  examination  of  the  cases  that  are  right 
in  nine  cases  out  of  ten. 
Question.  By  what  means? 

Answer.  I  purposely  make  a  mistake  in  duty  in  reference  to  one  of  the 
cases  ;  that  case  is  sent  for  examination,  is  found  correct,  and  the  others  are 


262 


NEW  YORK  CUSTOM  HOUSE; 


then  delivered.  It  is  very  seldom,  unless  they  have  reason  to  suspect  the  good 
faith  of  the  importer,  that  more  than  one  package  is  examined  oul  of  every  ten, 
and  sometimes  not  even  that. 

By  the  chairman : 

Question.  Suppose  the  government  suspect  anything,  what  is  the  next  step  I 
Answer.  If  the  merchant  is  quick  enough,  he  immediately  sends  for  all  the 
cases,  and  if  he  has  time,  substitute  other  cases.  As  a  general  thing,  the  mer- 
chant has  got  24  hours  start  of  the  government.  Suppose  I  have  ten  cases  ; 
I  pay  the  duty  to-day ;  the  goods  are  in  store ;  I  give  the  penal  bond  ;  get 
possession  of  nine  cases  at  once  ;  the  other  is  transferred  to  be  examined,  the 
very  case  that  I  want  to  have  examined  ;  no  examination  has  yet  taken  place  ; 
I  got  possession  of  nine  at  once,  before  the  invoice  can  get  to  the  examiners  to 
be  compared  with  the  case.  I  have  48  hours,  and  in  that  48  hours  I  can  make 
substitutions,  subtractions,  additions,  so  as  to  make  the  nine  cases  correspond 
with  the  invoice. 

Question.  If  the  government  have  reason  to  suspect  anything  wrong,  what  is 
the  first  move  they  make  ? 

Answer.  They  send  an  order  to  them  to  have  these  goods  returned  to  be 
examined. 

Question.  The  merchant  has  24  hours  after  that,  so  that  in  all  he  has  three 
days? 

Answer.  If  he  is  prepared,  it  does  not  take  an  hour.  I  will  give  you  an  ac- 
tual case  in  point:  A  merchant  paid  his  duties  at  11  o'clock  on  two  cases  of 
laces,  one  corresponding  with  the  invoice  and  the  other  not,  and  at  12  o'clock 
the  goods  were  at  the  store.  While  the  officer  went  to  dinner  a  substitution 
was  made  so  as  to  make  the  fraudulent  case  correspond  to  the  invoice,  and  the 
contents  of  the  fraudulent  case  were  sent  away  from  the  store ;  at  one  o'clock 
it  is  returned  to  the  public  store,  examined  and  found  to  correspond  with  the 
invoice. 

Question.  You  speak  of  a  penal  bond  that  is  given — will  you  explain  what 
it  is? 

Answer.  The  merchant  binds  himself  by  that  bond  not  to  open  or  dispose  of 
any  goods  that  the  government  gives  him  possession  of  until  ten  days  after  the 
cases  designated  for  examination  shall  have  been  examined. 

Question.  What  is  the  practice  ? 

Answer.  The  practice  is  really  to  serve  them  the  very  moment  they  come 
from  the  ship,  not  even  taking  them  into  the  store. 

Question.  Who  designates  the  goods  to  be  examined  ? 

Answer.  There  are  deputies  specially  appointed  for  that. 

Question.  To  your  knowledge  does  the  owner  or  his  agent  ever  designate 
these  goods  ? 

Answer.  Very  frequently. 

Question.  And  that  designation  is  accepted  ? 

Answer.  Frequently ;  I  have  asked  for  cases  a  hundred  times,  and  have  had 
them  sent. 

Question.  The  object  in  requiring  this  bond  originally  was  because  the  gov- 
ernment was  very  much  limited  for  want  of  room  ? 
Answer.  I  presume  so. 

Question.  And  now  that  the  government  has  these  bonded  warehouses  all 
over  the  city,  the  practice  does  not  exist  ? 

Answer.  It  will  prevail  as  long  as  the  merchant  has  the  temptation  before  him 
of  four  or  five  days  before  the  invoice  gets  into  his  hands. 

Question.  In  what  way  could  the  government  have  detected  this  fraud  upon 
it  in  this  actual  case  that  you  speak  of? 


NEW  YORK   Cr.STOM  Ilo'.'SE. 


2G3 


Answer.  By  notifying  the  storekeeper  in  charge  of  tin-  merchandise  at  Jersey 

City  not  to  deliver  thai  package. 

Question.  That  is,  upon  the  supposition  thai  they  suspected  a  fraud 
Answer.  They  did  suspect  the  man  because  they  were  watching  him,  hut  it 

took  the  government  two  days  to  do  what  we  accomplished  in  two  hours;  it  took 

them  two  days  to  get  ready  to  send  for  that  case,  and  when  they  did.  it  was  all 

ready  for  t  hem. 

Question.  Will  you  indicate  the  routine  at  the  custom-house  which  it  takes 
two  days  to  go  through  I 

Answer.  You  commence  at  the  collector's  office;  the  first  step  is  to  present 
your  entry  to  an  entry  clerk;  he  puts  a  stamp  upon  it;  calculate-  the  duty  ; 
sees  that  the  rates  are  properly  taken  up  ;  gives  you  a  permit ;  puts  his  initials 
upon  one  corner  of  it;  then  you  take  it  to  the  naval  office,  and  there  the  same 
thing  is  gone  through,  (you  being  obliged  at  both  places  to  take  your  turn  with 
others;)  there  another  check  is  put  on  the  same  permit;  then  you  go  to  the 
deputy  collector  and  swear  to  the  entry,  and  he  designates  the  case  or  baggage 
for  examination ;  then  you  go  to  the  bond  desk  and  give  your  penal  bond,  and 
there  is  another  check  put  on  the  permit;  then  you  go  to  the  naval  officer's 
cashier,  and  he  puts  another  check  on  the  permit;  then  you  go  to  the  colled  mi's 
cashier,  and  you  pay  your  money,  and  he  puts  another  check  on  the  permit ; 
then  you  go  back  to  the  naval  officer's  cashier,  and  you  get  a  counter  check,  and 
then  to  that  the  naval  officer  puts  his  signature ;  then  you  go  to  the  collector's 
office  for  his  signature,  and  it  is  done.  The  invoice  and  the  entry  are  kept  by 
the  cashier. 

Question.  You  have  paid  your  duty — what  is  the  next  step? 

Answer.  The  next  step  is  this:  they  take  that  invoice,  put  a  stam])  upon  it 
that  the  duty  has  been  paid,  and  number  it  in  large  figures  ;  afterwards  it  is 
registered  in  a  book,  the  name,  the  vessel,  and  the  number.  Then  a  list  of  these 
invoices  is  made,  being  a  duplicate  of  those  in  the  book,  and  that  list,  with  tin- 
invoices,  are  sent  to  the  examiner;  there  they  are  entered  again  into  another 
book,  having  been  previously  checked  off  by  a  clerk  specially  appointed  for  that 
purpose,  who  distributes  them  at  the  same  time  to  different  examiners.  These 
different  examiners  again  subdivide  them  ;  they  are  sent  to  the  heads  of  the  dif- 
ferent departments ;  they  are  again  subdivided,  and  there  they  remain  until  the 
package  comes  either  from  the  store  or  from  the  vessel.  If  you  have  any  luck 
you  may  possibly  on  the  third  day  have  the  case  opened  and  examined,  hut  that 
is  not  a  common  thing.  It  takes  from  five  to  six  days  before  they  touch  the 
case  again.  The  merchant  has  a  clean  swing  all  this  time.  When  the  case 
has  been  examined  and  found  to  correspond  with  the  invoice,  the  invoice  is  then 
sent  down  tp  the  appraiser's  office  for  his  signature  ;  sent  back  to  be  placed  upon 
the  list,  and  the  list  returned  to  the  collector's  office  ;  it  is  checked  off  on  another 
list  and  taken  to  the  amendment  bureau,  as  it  is  called,  to  see  that  the  classifi 
cation  is  correct ;  thence  it  is  sent  to  the  naval  office,  also  with  the  classification, 
and  then  finally  sent  to  the  order  desk  for  the  purpose  of  getting  a  permit  for 
the  examined  case,  and  if  the  merchant  gets  through  in  one  week  he  regards  it 
as  expeditious.  In  case  the  merchandise  should  not  be  found  to  agree  with  the 
invoice,  the  invoice  is  sent  to  the  appraiser's;  the  appraiser  sends  it  to  the  col- 
lector; the  deputy  collector  sends  it  to  the  proper  clerk;  the  clerk  makes  oul  a 
notice  which  he  puts  in  the  post  office  for  the  merchant,  which  he  gets  on  the 
second  or  third  day  from  the  time  that  the  examiners  have  called  for  the  balance 
of  the  goods,  which  you  see  gives  ample  time  to  tin;  merchant  to  make  such  dis- 
position of  the  case  as  he  sees  fit.  Even  if  he  sends  it  away,  he  will  have  ample 
time  to  telegraph  to  have  it  sent  hack  again,  or  to  replace  it.  1  have  known 
cases  to  be  kept  six  weeks,  when  there  was  nothing  wrong  with  them. 

Question.  Why  were  they  kepi  so  long  \ 

Answer.  From  neglect  sometimes. 


264 


NEW  YOKK  CUSTOM  HOUSE. 


Testimony  of  George  D.  Pi  thins. 

March  2,  1S64. 

George  D.  Pitkin  sworn  and  examined,  of  the  firm  of  Butler  &  Pitkin,  346 
Broadway. 

By  the  chairman  : 
Question.  What  business  are  you  engaged  in? 
Answer.  In  the  Yankee  notion  business. 

Question.  Did  you  ever  have  any  trouble  in  passing  your  goods  through  the 
custom-house,  or  after  you  got  them  passed? 
Answer.  Yes,  sir. 

Question.  Please  state  what  it  was  and  when  it  was. 

Answer.  I  was  standing  at  my  desk  one  day,  (my  partner,  Mr.  Butler,  was 
sick  at  the  time,)  and  three  gentlemen  came  into  the  store,  and  one  of  them 
asked  me  for  my  books  and  papers.  This  was  sometime  in  the  fall  of  1863;  I 
cannot  give  you  the  exact  date.  1  asked  him  what  he  wanted, and  he  said  there 
was  a  charge  against  me  of  defrauding  the  government.  It  came  like  a  thun- 
derclap upon  me.  I  asked  him  for  his  authority,  and  he  showed  me  a  printed 
paper  from  the  court.  I  hardly  knew  what  he  wanted  with  those  three  men 
there.  He  made  that  charge,  and  I  asked  him  where  and  how  it  was  made.  If 
I  am  not  mistaken,  the  charge  was  brought  on  one  case  of  goods  from  Enoch  & 
Oppenheim,  of  Paris.  I  immediately  handed  him  my  books.  He  asked  me  for 
my  papers,  and  I  handed  him  every  paper  I  had, from  beginning  to  end.  One  of 
these  officers  said  to  me  that  this  matter  could  be  arranged.  1  know  the  name 
of  one  of  these  men  was  Isaacs  ;  whether  he  was  the  man  that  said  so,  I  cannot 
say.  They  took  especial  care  not  to  charge  us  with  doing  anything  intention- 
ally wrong.  My  bookkeeper  was  away  and  my  partner  was  sick  at  the  time. 
I  thought  it  was  something  merely  temporary,  ami  could  be  explained  at  once, 
and  1  could  have  my  books  returned  to  me  immediately.  They  took  my  cash 
book,  letter  book,  ledger,  invoice  book,  and  asked  me  if  1  had  any  other 
books,  and  I  said  no.  I  gave  them  my  papers  also.  This  was  about  3  o'clock 
on  Saturday,  and  in  going  away  from  the  store,  which  is  about  two  blocks  from 
Stewart's,  about  the  middle  of  the  block,  I  thought  of  the  foreign  invoice  book 
which  I  had  not  given  up.  Being  desirous  that  they  should  have  everything, 
so  that  I  could  not  be  accused  of  hiding  anything,  I  went  back  of  my  own 
accord,  got  that  book  of  foreign  entries,  and  took  it  down  to  the  naval  officer's, 
laid  it  on  the  desk  in  the  naval  officer's  office,  (not  in  Mr.  Denison's  private 
room,)  and  inquired  if  it  would  be  safe  there  until  morning,  and  I  was  told  it 
would  be.  I  went  in  the  morning  and  told  them  that  I  had  brought  that  book 
down  there  for  examination.  Some  two  or  three  gentlemen  were'present,  and 
they  seemed  to  be  conversing  about  the  matter,  and  they  seemed  to  understand 
that  I  was  there  for  some  purpose,  and  the  remark  was  made  that  I  could  go 
into  the  private  office.  I  was  ushered  into  Mr.  Franklin's  room  ;  he  was  very 
angry  and  said,  "  What,  business  have  you  got  in  here  ;  1  am  not  ready  for  you." 
I  asked  him  when  he  would  be  ready  ;  I  think  he  said  some  time  in  the  after- 
noon. I  went  down  at  the  appointed  time;  found  my  books  and  papers  there, 
and  a  statement,  made  up  on  a  sheet  of  paper,  showing  that  they  had  a  claim 
against  us  for  about  $4,000.  I  asked  them  for  what;  they  said  for  defrauding 
the  government.  I  asked  them  in  what  way  ;  they  showed  me  that  I  had  paid 
duty  on  so  much,  when  I  should  have  paid  on  so  much.  I  asked  them  where 
was  the  difference  ;  I  think  nothing  more  was  said  about  the  matter,  and  I  went 
home.  Either  that  day  or  the  day  before  I  was  advised  to  go  and  see  a  lawyer. 
I  went  to  see  Mr.  Craig,  by  the  advice  of  Mr.  Isaacs,  (I  think  it  was  during  the 
day.)  Mr.  Isaacs  and  another  gentleman  seemed  to  be  very  officious,  and 
wanted  to  introduce  me  to  Surveyor  Andrews.  I  went  in  and  was  introduced 
to  Mr.  Andrews.    As  I  said,  I  was  advised  to  go  and  see  Mr.  Craig,  and  I  did 


NEW  YORK  CUSTOM  BOUSE. 


265 


see  him  ;  stated  the  case  to  him,  and  lie  went  with  me  that  afternoon  and  stated 
the  case  to  Mr.  Franklin,  and  they  found  that  1  had  paid  on  86  pounds  more 
than  I  should,  and  they  marked  that  off,  and  made  a  claim  on  the  balance.  I 
asked  them  what  was  to  be  done,  and  they  said  make  a  claim  on  the  goods. 
You  will  understand  that  when  these  books  were  taken  they  placed  an  officer  in 
charge  of  the  store,  and  would  not  allow  any  goods  to  be  taken  on!  and  shipped. 
The  next  day,  through  the  intervention  of  one  of  the  officers,  they  modified  the 
order  by  allowing  me  to  ship  goods.  This  officer,  whose  name  I  do  not  know, 
after  asking  me  what  the  amount  of  our  stock  was  and  what  amount  we  were 
selling  a  day,  and  seeing  that  we  were  perfectly  responsible,  allowed  ns  to  ship 
goods.  He  made  me  give  him  a  memorandum  for  one  or  two  days  of  the  goods 
we  shipped.  If  my  memory  serves  me,  they  took  possession  of  the  .-lore  and 
my  books  and  papers  on  Thursday  and  Friday,  and  1  think  they  retained  Buch 
possession  over  Sunday  until  Monday  or  Tuesday.  We  were  tol  I,  by  Mr. 
Isaacs,  that  this  matter  could  be  settled;  we  did  not  know  how  it  could  he 
settled,  and  we  thought,  if  we  had  done  wrong,  it  would  be  better  to  pay  some- 
thing and  release  ourselves.  We  were  newly  established  in  business,  and  this 
seizure  took  place  at  the  commencement  of  our  busy  season.  We  lost  one  cus- 
tomer by  the  transaction  who  has  never  been  into  the  store  since  to  see  us.  My 
special  partner  (Mr.  Cole,  of  Cincinnati)  went  down  to  see  Mr.  Barney  about 
the  matter.  Prior  to  that,  however,  we  laid  the  matter  before  Mr.  Edward  S. 
Jaffray,  one  of  the  staunchest  men  in  the  country,  and  he  went  down  to  Bee  Mr. 
Barney.  He  could  do  nothing  for  us.  Mr.  Cole  went  to  see  Mr.  Parsons,  a  law 
partner  of  Mr.  Barney,  of  the  firm  of  Barney,  Butler  &  Parsons,  who  had  acted 
as  Mr.  Cole's  attorney,  and  who  had  drawn  up  our  partnership  papers.  Mr. 
Parsons,  as  a  friend,  called  upon  Mr.  Barney  with  Mr.  Cole,  and  they  convinced 
him  that  these  officers  had  done  wrong.  In  the  mean  time  the  matter  had  been 
placed  in  the  hands  of  Mr.  Craig,  and  he  advised  us  all  the  time  not  to  settle  it — 
not  to  pay  any  money,  but  to  stand  a  suit.  Mr.  Jaffray  wanted  us  immediately 
to  go  to  Mr.  Cutting  and  place  it  in  his  hands — not  to  pay  any  money  ;  but  the 
officers  were  in  our  store;  we  were  young  men,  just  starting  in  business,  and 
scared,  I  will  freely  admit,  anxious  to  extricate  ourselves  from  the  difficulty,  and 
we  settled  the  matter.  Mr.  Cole  and  myself  went  down  to  Mr.  Barney  and 
stated  the  case  to  him.  We  offered  to  bring  evidence  of  our  honesty  from  such 
men  as  we  had  come  in  contact  with  in  our  business  relations ;  that  my  partner 
had  been  here  for  15  or  18  years,  and  his  character  was  unquestioned  ;  that  I 
had  been  a  partner  of  the  firm  of  Wm.  H.  Lee  &  Co.,  and  I  offered  to  bring 
the  evidence  of  such  men  as  Chittenden,  Geo.  Bliss  &  Co.,  Mr.  Jaffray,  and  that, 
we  had  no  intention  of  doing  wrong.  Mr.  Denison  came  into  the  office  and 
said  that  he  had  laid  the  case  before  the  Solicitor  of  the  Treasury,  and  there  was 
no  other  way  but  to  pay  the  money.  Mr.  Barney,  in  the  presence  of  Mr.  ( Jole, 
made  the  assertion  to  us,  that  if  we  paid  the  money  we  had  redress  through  Mr. 
Chase.  On  that  ground  we  paid  the  money,  and  upon  no  other.  We  went  out, 
met  Mr.  Denison,  and  told  him  we  would  settle  it,  and  he  sent  us  back  our 
books.  We  paid  into  court,  through  Mr.  Craig,  about  ->3,700.  My  lawyer 
charged  me  $250  ;  my  loss  was  about  $4,020.  We  went  to  see  Mr.  Chittenden, 
who  got  Mr.  Denison's  position  for  him,  and  Mr.  Chittenden  went  down  to  Bee 
Mr.  Denison  for  us,  and  he  told  us,  after  making  some  investigation,  that  alter 
the  money  was  paid  we  had  no  redress;  that  the  money  had  gone  into  c  ant, 
and  we  had  no  redress.  Prior  to  this  we  drew  up  a  statement,  or  rather  a  report, 
of  which  we  have  a  copy  at  the  store,  which  was  sent  to  Mr.  Chase,  Btating  <air 
case  as  we  understood  it,  attesting  our  character  by  half  a  dozen  of  the  best 
firms  in  New  York. 

Question.  Will  you  specify  the  amounts  of  duties  you  did  actually  |  ay,  and 
what  you  should  have  paid  ? 

Answer.  On  the  case  by  the  Persia  we  paid  on  1,714.25  francs,  when  wo 


2GG 


NEW  YORK  CUSTOM  llrtUSE. 


should  have  paid  on  1,758.  We  entered,  up  to  this  time,  entirely  free  from  any 
intention  of  doing  anything  wrong,  our  goods  at  3  per  cent,  commission — French 
goods,  I  mean. 

In  the  case  of  Enoch  and  Oppenheim  we  did  not  get  our  charges  for  some 
time. 

Question.  You  entered  your  invoice  at  what  commission  ? 

Answer.  Three  per  cent.,  and  paid  on  that,  when  we  should  have  paid  on 
five  per  cent,  commission ;  that  is  what  I  understand  now,  but  did  not  then. 

Question.  This  five  per  cent,  commission — was  it  a  commission  paid  to  a  party 
you  had  to  purchase  for  you  in  Europe? 

Answer.  In  this  especial  case  Oppenheim  had  an  agent  here  by  the  name  of 
Charpentier. 

By  Mr.  Rollins  : 

Question.  Did  you  not  receive  an  invoice  of  the  goods  at  the  time  they  were 
received  1 

Answer.  Yes,  sir ;  and  entered  them  according  to  the  invoice. 
Question.  Was  there  a  commission  of  three  per  cent,  charged  ? 
Answer.  There  was  no  commission  charged  at  all,  I  think,  in  this  Oppenheim 
case. 

In  the  case  by  the  Lara  it  is  claimed  that  we  should  have  paid  on  1,7(51  francs ; 
whereas  we  paid  on  1,689.15. 

On  the  case  by  the  Africa  it  is  claimed  that  we  should  have  paid  on  1,983 
francs;  whereas  we  paid  on  1,933  francs.  This  difference  is  explainable  in  in- 
land carriage,  Havre  charges,  small  charges  for  postage,  drayage,  and  the  differ- 
ence of  two  per  cent,  in  commission. 

On  the  case  by  the  Scotia  we  paid  on  98  pounds  and  3  shillings,  when  we  should 
have  paid,  it  is  claimed,  on  106  pounds  and  15  shillings.  I  do  not  know  how 
that  difference  is  ;  we  sent  for  the  original  entry,  but  they  refused  to  give  it. 

On  the  case  by  the  Etna  it  is  claimed  that  we  should  have  paid  on  233  pounds 
and  6  shillings,  whereas  we  paid  on  224  pounds  and  one  and  tenpence. 

Some  goods  we  have  purchased  of  Westhead  through  their  agent  here,  Mr. 
Holgate.  Upon  some  goods  which  they  manufacture  themselves  they  do  net 
charge  us  any  commission. 

In  a  case  that  came  out  by  the  Etna,  they  had  deducted  2  J  per  cent,  from  it. 
This  was  off  the  invo.ee  when  we  entered  it.  It  was  afterwards  found  to  be  a 
mistake,  and  in  settling  it  we  had  to  put  2 J  per  cent,  on,  which  makes  a  differ- 
ence of  5  or  6  pounds  there.  That  will  explain  why  there  was  so  large  a  dis- 
crepancy, and  the  balance  consists  in  little  preliminary  charges. 

By  the  Etna  again  we  should  have  paid  on  89  pounds  13  shillings  and  six- 
pence ;  whereas  we  paid  on  87  pounds  14  shillings  and  eightpence. 

On  a  case  by  the  Asia  we  should  have  paid  140  pounds  12  shillings  and 
sevenpence,  whereas  we  paid  on  136  pounds  three  shillings  and  fourpence. 
pence. 

I  should  state  that,  according  to  Mr.  Franklin's  own  admissions,  the  whole  loss 
to  the  government  was  under  $100  ;  I  think  it  was  under  $50. 

Question.  You  say  that  the  difference  to  the  government  was  less  than  $50  ? 
Answer.  It  was  less  than  $100  ;  I  think  less  than  850. 

By  the  chairman  : 
Question.  For  which  you  paid  $3,700  ? 

Answer.  Yes,  sir;  we  have  got  $250  back  from  Mr.  Holgate,  the  agent  of 
Westhead,  of  whom  we  have  bought  a  great  many  goods.  I  told  him  I  had 
been  led  into  this  difficulty  by  a  mistake  of  his,  and  that  he  had  made  me  suffer 
exceedingly  in  this  matter  of  2  J  per  cent,  discount,  and  I  told  him  I  was  not  go- 


NEW  YORK  CUSTOM  HOUSE. 


2G7 


ing  to  pay  it.  He  said  to  mc  that  lie  would  divide  it,  the  $500  dollars  ;  and  I 
got  back  $250,  just  what  I  had  to  pay  my  lawyer. 

Question.  You  spoke  of  the  paying  the  money  into  court ;  what  court  do  you 
mean  1 

Answer.  The  United  States  district  court. 
Question.  Do  you  know  what  becomes  of  it  then  1 
Answer.  I  think  I  know  what  becomes  of  it. 
Question.  What  does  become  of  it  1 

Answer.  A  part  of  it  goes  into  the  hands  of  the  government,  and  a  part  of  it 
does  not 

Question.  You  do  not  mean  to  intimate  that  this  money  paid  into  the  court 
is  improperly  disposed  of? 
AnsAver.  Not  at  all. 

By  Mr.  Le  Blond  : 

Question.  I  understand  from  you  that  a  part  of  your  goods  you  buy  or  con- 
tract for  through  an  agent  these  European  houses  have  here  ? 
Answer.  Yes,  sir. 

Question.  I  also  understand  you  to  say  that  you  purchased  a  quantity  of 
goods  from  an  agent  of  one  of  these  European  houses  here  ;  that  one  of  the 
cases  here  enumerated  contained  the  goods  in  question,  and  that  you  paid  the 
agent  here  for  them? 

Answer.  We  paid  the  whole  bill  here  to  this  agent,  and  received  his  receipt 
for  it. 

Question.  You  paid  him  the  5  per  cent,  here  ? 
Answer.  Yes,  sir. 

Question.  Was  it  upon  the  receipt  of  the  bill,  or  after  ? 
Answer.  It  was  after  the  invoice  came  to  hand. 

Question.  Why  did  you  not  pay  to  the  custom-house  5  per  cent,  added  to 
the  original  cost  ? 

Answer.  I  did  not  know  then  that  we  were  buying  on  5  per  cent,  commission 
of  this  party.  My  partner,  Mr.  Butler,  ordered  the  goods,  and  I  supposed  in 
paying  the  3  per  cent.  I  was  following  the  custom  of  the  government. 

Question.  When  you  received  your  bill  was  not  this  commission  added  ? 

Answer.  No,  sir;  this  was  put  in  afterwards  ;  when  he  sent  to  me  for  a  set- 
tlement, then  he  made  out  a  regular  statement  of  the  charges  and  added  his 
commission. 

Question.  Then  this  settlement  took  place  after  you  had  adjusted  the  matter 
with  the  custom-house  1 

Answer.  After  we  had  entered  the  goods. 

Question.  And  the  original  bill  sent  to  you  said  nothing  about  a  commission 
of  5  per  cent.  ? 

Answer.  Not  at  the  time. 

By  Mr.  Rollins : 

Question.  The  firm  were  in  possession  of  information  that  you  were  to  pay 
5  per  cent.  ? 

Answer.  Yres,  sir. 

Question.  Have  you  not  the  rate  of  charges  which  you  have  to  pay,  pub- 
lished here  in  your  city,  as  connected  with  the  custom-house,  that  is  easy  of 
access  ? 

Answer.  The  law  and  our  oath  state  that  we  must  pay  on  everything. 
Question.  Did  these  seven  cases  that  you  speak  of  all  occur  within  the  last 
year,  or  have  they  been  running  along  from  time  to  time  ? 


268 


NEW  YORK  CUSTOM  ITOUSE. 


Answer.  We  have  been  in  business  since  the  1st  of  July,  1862,  and  they 
have  all  occurred  since  then. 

Question.  Are  there  any  other  cases  within  that  period,  in  which  you  should 
have  paid  upon  five  per  cent,  when  you  only  paid  to  the  government  upon 
three  per  cent.  ? 

Answer.  I  think  not. 

By  the  chairman : 

Question.  Do  you  know  anything  about  any  abuses,  frauds,  black-mail  or 
per-centage  to  which  merchants  are  subjected  to  get  their  business  transacted 
at  the  custom-house  ? 

Answer.  No,  sir. 

Question.  It  has  been  claimed  that  you  could  not  get  entries  passed  without 
feeing  the  clerks  ? 

Answer.  I  have  no  knowledge  of  that  kind ;  I  know  that  our  goods  have 
come  up  short  from  the  appraiser's  office,  and  I  know  that  merchants 
pocket  such  losses,  for  they  are  generally  small ;  we  get  our  goods,  and  let 
these  losses  go. 

Testimony  of  John  C.  Rahming. 

Fort  Lafayktte,  March  19,  1864. 
John  C.  Rahming  sworn  and  examined. 

By  the  chairman: 
Question.  Are  you  a  native  of  this  country  ? 
Answer.  I  am  from  Nassau;  a  native  of  the  Bahamas. 
Question.  How  long  have  you  been  in  this  country  ? 
Answer.  Three  years  in  June. 

Question.  You  came  here  after  the  war  commenced  ? 
Answer.  Yes,  sir. 

Question.  And  established  yourself  in  New  York  ? 
Answer.  lres,  sir. 

Question.  In  the  shipping  and  commission  business — shipping  goods  to  Nas- 
sau ? 

Answer.  Yes,  sir ;  the  doctors  ordered  me  here  on  account  of  my  health  ;  I  was 
subject  to  the  liver  complaint;  the  doctor  told  me  I  must  live  in  a  northern  cli- 
mate ;  my  business  in  Nassau  was  the  provision  trade,  exporting  sponge  and  dye- 
woods. 

Question.  Did  you  go  into  the  same  kind  of  business  ? 
Answer.  Yes,  sir ;  I  was  supplying  my  place  with  provisions. 
Question.  How  came  you  here  to  Fort  Lafayette  ? 

Answer.  I  don't  know  ;  I  have  not  been  able  to  find  out,  except  that  it  is  for 
shipping  goods  to  Nassau. 

Question.  How  long  have  you  been  here  ? 

Answer.  I  came  here  New  Year's  eve ;  they  arrested  me  and  sent  ine  down 
here. 

Question.  You  have  no  idea  why  you  have  been  sent  here  ? 

Answer.  I  have  this  idea — it  is  for  shipping,  they  say,  to  Nassau. 

Question.  What  did  you  ship  ? 

Answer.  Provisions  is  my  principal  shipment. 

Question.  What  did  you  ship  them  on  ? 

Answer.  On  different  vessels  ;  on  the  "Eliza" — on  various  vessels  ;  on  every- 
thing that  I  could. 

Question.  Did  you  ship  on  the  "  Jose  ?" 

Answer.  No,  sir. 

Question.  On  the  "  Corsica  ?" 


NEW  YORK  CUSTOM  HOUSE. 


209 


Answer.  I  Bhipped  a  little  on  her ;  not  a  great  deal ;  perhaps  one  hundred 
and  fifty  barrels  a  month. 

Question.  You  had  to  give  bonds  to  ship  the  goods  ? 
Answer.  Yes,  sir. 

Question.  Who  signed  the  bonds  with  you  ? 

Answer.  Various  parties  in  New  York;  Jacob  Hines,  and  Mr.  Webster  was 
another  bondsman,  and  Mr.  Lyman.    They  were  the  principal  bondsmen. 
Question.  They  signed  as  sureties  ? 
Answer.  Yes,  sir. 

Question.  What  had  you  to  pay  for  it  ? 

Answer.  Not  one  farthing;  they  merely  signed  as  friends  of  mine. 
Question.  Did  you  ever  sign  any  bonds  for  either  of  them? 
Answer.  I  might  have  done  so  upon  one  or  two  occasions ;  I  think  it  is  pos- 
sible 1  have;  I  think  I  signed  once  for  Mr.  Webster. 
Question,  Was  he  shipping  goods  to  this  place?' 

Answer.  He  occasionally  made  a  small  shipment  to  Nassau ;  not  to  any  ex- 
tent. 

Question.  Did  you  ever  have  any  difficulty  in  having  your  bonds  accepted 
at  the  custom-house  ? 

Answer.  Not  when  I  brought  the  proper  sureties;  they  were  very  particular 
in  examining  as  to  what  real  estate  the  sureties  had. 

Question.  Supposing  your  sureties  were  objected  to  ;  what  was  your  next 
step  ? 

Answer.  We  had  upon  several  occasions  to  bring  two  sureties,  when  they 
thought  one  was  not  sufficient. 

Question.  Have  you  used  any  money  to  get  your  bonds  accepted? 

Answer.  No,  sir;  the  broker  always  did  my  business,  S.  D.  Babcock ;  the 
brokerage  for  each  bond  was  two  dollars  ;  that  was  his  regular  brokerage,  be- 
sides his  stamps ;  there  were  some  little  fees,  he  told  me ;  I  never  knew  what 
kind  of  a  fee  it  was ;  it  was  twenty  cents. 

Question.  What  became  of  your  bonds  after  you  had  executed  them  ;  what 
was  the  next  step  to  get  them  up  or  cancel  them  ? 

Answer.  I  had  to  get  from  Nassau  a  consul's  certificate  ;  that  certificate  had 
to  be  accompanied  with  one  of  the  entries  at  the  custom-house  out  there  at- 
tached to  the  consul's  certificate;  the  party  to  whom  the  goods  were  shipped 
swore  before  the  consul,  to  the  best  of  his  knowledge,  tliat  the  goods  were  im- 
ported for  home  consumption,  and  on  this  being  sworn  to,  the  consul  gave  a 
certificate. 

Question.  What  did  you  do  with  the  certificate  ? 

Answer.  It  was  brought  here. 

Question.  Then  what  did  you  do  with  it  ? 

Answer.  It  was  presented  to  the  custom-house;  Mr.  Babcock  always  did  the 
business. 

Question.  Did  you  ever  go  to  the  custom-house  about  it  yourself? 
Answer.  Occasionally  for  the  last  seven  months  I  have  been  there. 
Question.  Did  you  ever  get  up  any  of  your  bonds  ? 

Answer.  I  have  cancelled  several  bonds  until,  within  four  or  live  months,  they 
have  stopped  cancelling  bonds. 

Question.  Previous  to  that  time,  did  you  have  any  bonds  where  the  names 
were  cut  out  ? 

Answer.  No,  sir. 

Question.  Did  you  ever  hear  of  the  practice  of  buying  up  bonds  ? 
Answer.  No,  sir. 

Question.  While  you  were  in  this  business  you  speak  of,  did  you  ship  any- 
thing but  provisions  ? 

Answer.  Nothing  but  provisions,  with  other  little  things. 


270 


NEW  YORK  CUSTOM  HOUSE. 


Question.  What  were  they  ? 

Answer.  Pork,  lard,  butter,  cheese,  flour,  hams  and  bread;  we  have  had  a 
good  many  shoes. 

Question.  Did  you  ever  ship  any  hay  in  bales  ? 
Answer.  We  have  occasionally  shipped  a  little  on  deck. 
Question.  Was  anything  put  in  the  bales? 

Answer.  Not  to  my  knowledge  ;  I  know  this  much,  that  there  was  nothing 
in  tin-  hay  that  I  ordered  for  my  shipments,  unless  they  put  in  something  which 
they  never  got  paid  for. 

Question.  Did  you  ship  any  blankets  ? 

Answer.  No,  sir. 

Question.  Any  army  cloth  of  any  kind  ? 

Answer.  No,  sir. 

Question.  Hardware  ? 

Answer.  I  have  shipped  hardware. 

Question.  Telegraph  wire? 

Answer.  No,  sir. 

Question.  Powder  ? 

Answer.  Never  an  ounce  in  my  life ;  no  munitions  of  war  to  the  extent  of 
one  farthing. 

Question.  Did  you  ever  have  any  goods  seized  ? 

Answer.  Never;  it  was  invariably  my  practice  to  tell  my  broker  to  see  the 
surveyor  of  the  port,  and  have  him  send  a  man  to  see  that  everything  went  on 
board  straight,  because  we  took  outside  freight ;  I  told  him  I  would  pay  him 
regular  wages  to  any  officer,  to  see  that  everything  went  on  straight. 

Question.  Did  they  come  on  board  of  your  vessels  to  perform  this  extra  duty  ? 

Answer.  They  never  came;  they  did  not  think  it  necessary  to  come. 

Question.  Did  you  ever  pay  anything  extra  on  the  wharf  to  the  inspector  or 
his  aid  ? 

Answer.  No,  sir.  I  do  not  know  anything  about  any  such  thing ;  never 
paid  anything  more  than  the  regular  fees.  I  did  everything  in  a  straight- 
forward way. 

Question.  You  don't  know  why  you  are  here  1 

Answer.  Nothing  except  that  I  may  have  some  enemies  on  the  outside. 

Question.  Are  you  not  aware  that  some  portions  of  the  goods  you  shipped 
from  this  port  were  subsequently  seized  on  board  of  the  vessels  running  the 
blockade  ? 

Answer.  No,  sir ;  I  never  made  one  shipment  from  New  York  that  I  was 
aware  was  intended  for  the  south,  nor  am  I  aware  of  a  single  article  that  I  have 
shipped  ever  reaching  south.  At  the  commencement  of  the  war  a  United  States 
gunboat  came  into  Nassau.  The  consul,  Mr.  Whiting,  out  there,  wanted  coal. 
There  were  several  parties  who  had  coal ;  we  had  a  cargo  which  had  just 
arrived  from  Pictou ;  they  applied  to  everybody  (the  United  States  gunboat) 
for  coal,  but  no  one  furnished  them  coal  but  myself.  We  furnished  them  with 
coal,  and  the  consequence  was  that  our  house  was  spotted,  as  we  called  it 
there.  We  could  not  sell  even  an  ounce  to  a  British  steamer.  Whenever  Mr. 
Wlii ting  came  and  wanted  to  charter  a  vessel  to  carry  a  message  to  the  fleet, 
we  furnished  the  vessel,  and  the  consequence  was  that  we  got  the  black  look  of 
most  of  the  people  of  the  country.  My  brother  says,  "These  fellows  are  taking 
hold  of  the  trade  of  the  south,  and  we  will  turn  our  attention  to  the  home 
trade,"  and  the  consequence  was  that  we  gained  almost  the  larger  portion  of  the 
domestic  trade ;  and  where  we  shipped  before  five  barrels  north  of  provisions, 
we  shipped  near  twenty-five  barrels  north.  I  have  never  had  an  interest  to 
the  extent  of  a  farthing  in  the  blockade  running,  my  motto  being  while  here  to 
do  this  country  all  the  good  I  could,  and  no  harm.  I  will  assure  you  that  I 
have  done  no  intentional  harm  to  this  country,  and  my  statement  can  be  con- 


NEW   YORK  CUSTOM    HOUSE.  271 

finned  by  reference  to  the  books.  What  I  say  about  supplying  the  gunboats 
is,  that  Ave  supplied  them  with  coal  whenever  they  came  in  there,  and  for  that 
very  reason  we  were  marked  off. 

By  Mr.  Rollins  : 

Question.  You  say  you  have  been  in  trade — shipping  goods.    How  long? 
Answer.  Three  3  cars. 

Question.  Yon  came  here  just  prior  to  the  war  I 

Answer.  Yes,  sir;  I  had  done  business  with  New  York  for  nine  years. 
Question.  What  was  the  amount  of  your  business  I 

Answer.  My  business  has  been  perhaps  $200,000  a  year.  I  have  managed 
to  live  by  it  here.  With  what  we  make  out  there,  we  make  a  comfortable 
living — nothing  more.    My  books  will  show  what  I  say  to  be  correct. 

Question.  The  trade  with  Nassau,  as  is  apparent  from  evidence  already  sub- 
mitted to  the  court,  has  largely  increased  since  the  war  commenced.  How  do 
you  account  for  it  ? 

Answer.  I  can  account  for  it  in  this  way  to  some  extent  :  Nassau  used  to  do 
a  large  amount  of  trade  with  Savannah,  "Wilmington,  and  Charleston.  That 
entire  trade  of  importing  provisions  from  Savannah  and  Charleston,  and  lumber 
from  Wilmington,  has  been  cut  off,  and  it  has  all  come  to  New  York,  and  so 
has  increased  the  trade  here.  The  floating  population  of  Nassau,  of  course,  is 
greatly  more  than  it  has  ever  been  before. 

Question.  In  importing  provisions  to  so  large  an  extent,  you  would  not 
naturally  go  to  Charleston  ? 

Answer.  In  getting  flour  the  difference  in  time  between  Charleston  and  New 
York  would  make  it  equally  as  cheap  in  getting  it  from  Charleston  as  from  New 
York. 

Question.  Your  brother  lives  at  Nassau  ? 
Answer.  Yes,  sir. 

Question.  You  ought  to  be  pretty  familiar  with  the  way  business  is  done  in 
Nassau  since  this  rebellion  commenced.  Now,  have  you  not  been  informed  that 
large  quantities  of  goods  shipped  from  New  York  have  ultimately  gone  to  the 
rebels  \ 

Answer.  I  have  not  been  informed,  but  I  had  my  own  views. 
Question.  Have  you  received  such  information  from  your  brother  or  your 
correspondents  ? 

Answer.  Not  to  my  knowledge,  I  can  assure  you. 

Question.  Do  you  mean  to  say  that  you  have  received  no  such  information 
as  that  1 

Answer.  I  have  not  really. 

By  the  chairman  : 
Question.  Have  you  never  heard  this  said  ? 

Answer.  I  have  heard  that  goods  were  being  sold  from  New  York.  I  have 
heard  this  remark — that  it  was  singular  some  people  could  manage  to  get  out 
such  quantities  of  goods  without  any  difficulty,  while  others  could  not.  I  have 
never  been  informed  positively,  but  I  have  been  impressed  witli  the  idea  myself, 
that  some  of  them  have  gone  to  the  south.  My  brother  has  never  even  said  to 
me,  nor  have  I  ever  been  informed  by  him,  that  any  goods  which  have  been 
shipped  from  here  by  us  have  been  sent  or  sold  to  any  particular  house  south. 
I  have  heard  that  a  great  many  goods  have  gone  to  Matamoras. 

Question.  Have  not  a  great  many  vessels  been  running  from  Nassau  to 
Charleston  ? 

Answer.  Yes,  sir;  as  soon  as  this  blockade  came  up,  men  who  were  in  the 
habit  of  buying  goods  before  the  bonds  were  required  for  goods  that  were 


272 


NEW  YORK  CUSTOM  HOUSE. 


intended  to  go  south,  turned  their  trade  somewhere  else.  They  sent  to  England 
for  muskets,  and  I  know  myself  that  it  increased  the  trade  with  England 
tenfold.    Before  that,  most  of  the  trade  came  to  New  York. 

Question.  You  have  no  doubt  that  the  goods  that  were  shipped  from  England 
wenl  t<>  tin'  aid  of  the  rebellion? 

Answer.  I  believe  they  did  ;  my  reason  for  believing  that  the  goods  that  I 
shipped,  and  that  went  from  here,  did  no)  go  to  the  south,  was  this:  they 
were  obliged  to  get  a  certificate  from  the  consul  to  enter  these  goods  in  the 
custom-house  and  pay  the  duty  upon  them,  while  the  goods  that  went  from 
England  they  had  the  privilege  of  bonding,  and  therefore  they  had  great 
advantage  in  this  respect.  I  have  no  doubt  that  goods  have  gone  south  :  that 
they  were  shipped  in  large  quantities ;  and  I  have  often  wished  that  they  could 
check  the  trade  in  some  way. 

By  Mr.  Le  Blond  : 

Question.  Has  your  general  business  with  Nassau  increased  or  diminished 
since  the  rebellion  commenced? 

Answer.  My  business  has  increased,  and  I  can  give  you  my  reasons  for  the 
increase  of  my  business.  We  have  given  our  attention  entirely  to  the  island 
trade.  We  were  only  small  importers  before  the  rebellion,  because  our  prin- 
cipal business  was  the  export  of  dye-woods  and  sponges.  The  large  importers 
there  now  are  the  rebel  agents,  and  they  had  lost  sight  of  the  home  trade.  My 
brother  thought  now  Avas  the  time  to  take  hold  of  it,  while  they  turned  their 
backs  upon  it,  and  the  consequence  is  we  are  increasing  our  business. 

Question.  Did  you  do  any  shipping  business  for  any  other  establishment 
than  your  own  ? 

Answer.  Yes,  sir;  for  a  good  many  countrymen. 

Question.  Do  you  know  all  the  parties  to  whom  you  shipped? 

Answer.  Yes,  sir. 

Question.  Were  they  bona  fide  residents  of  Nassau  ? 
Answer.  I  believe  they  are  all  residents  of  Nassau. 
Question.  You  knew  them  before  you  came  here? 

Answer.  I  knew  most  of  them ;  there  are  one  or  two  black  fellows  that  have 
gone  into  business  there  since  I  came  here ;  they  were  recommended  by  the 
different  customers  I  have  been  doing  business  with  as  being  good  men  of 
worth  and  credit. 

Question.  The  amount  of  shipments  to  these  men  aside  from  your  brother — 
is  it  heavy  or  light  ? 

Answer.  No,  sir ;  I  suppose  they  average,  some  of  them,  perhaps  three  or 
four  thousand  dollars  a  year,  and  others  not  as  much;  perhaps  the  average 
would  be  three  or  four  thousand  dollars  a  year. 

Question.  Have  you  any  bonds  which  have  not  been  cancelled  ? 

Answer.  I  have  a  large  amount  of  certificates  on  hand  now  for  the  cancel- 
lation of  bonds. 

Question.  What  was  the  reason  that  they  have  not  been  cancelled  ? 

Answer.  My  broker  learned  that  there  was  a  committee  coming  on  to  examine 
the  affairs  of  the  custom-house,  but  nothing  would  be  done  until  the  committee  got 
through.    We  have  files  of  certificates  now. 

Question.  Had  you  any  trouble  in  procuring  the  cancellation  of  your  bonds 
up  to  the  time  you  were  arrested  ? 

Answer.  No,  sir ;  1  would  send  up  my  certificates.  The  certificates  have 
been  changed  from  what  they  were  before.  At  first,  the  certificate  was  in  this 
way  :  you  had  simply  to  go  before  the  consul  and  swear  that  the  goods  imported 
by  such  and  such  a  vessel  were  imported  in  good  faith  for  the  consumption  of 
the  Bahamas.  The  certificate  was  sent  on  here  and  the  bonds  were  cancelled 
under  it.    The  next  certificate  that  was  required  was  that  we  should  have 


NEW   YORK  CUSTOM  BOUSE. 


273 


attached  to  the  consul's  certificate  an  entry  made  in  the  custom-house  at  Nassau 
by  the  collector  that  the  duties  had  been  paid  on  the  goods. 

Question.  And  they  brought  about  the  cancellation  of  the  bonds  here? 

Answer.  Yes,  sir. 

Question.  Your  bonds  have  not  yet  been  cancelled  ? 
Answer.  No,  sir. 

Question.  Have  you  made  any  efforts  for  a  hearing  ? 
Answer.  Never  had  a  hearing. 

Question.  You  say  you  have  been  here  since  New  Year's  eve ;  have  you 
applied  to  any  officials  for  a  hearing? 

Answer.  I  have  applied  to  Lord  Lyons  to  find  oat  from  headquarters  what  I 
was  arrested  for,  &c. 

Question.  Has  he  replied  to  you  ? 

Answer.  I  sent  a  lawyer  on  to  him,  and  he  said  that  this  committee  that  was 
down  here  the  other  day  would  investigate  all  the  matters,  and  when  they  got 
through  their  investigation  I  would  know  ;  I  was  only  examined  a  few  days  ago. 

Testimony  of  Epcs  Sargent. 

April  23,  1864. 

Epes  Sargent,  being  sworn,  was  asked  by  Mr.  Le  Blond  :  Mr.  Sargent,  you 
have  been  spending  some  time,  the  committee  are  informed,  at  Nassau.  Can 
you  give  us  any  information  about  blockade-running,  and  the  parties  concerned 
therein  ? 

Answer.  I  take  pleasure  in  making  a  statement  relative  to  the  rebel  trade 
and  blockade-running  at  the  city  of  Nassau,  N.  P.  It  may  be  well  to  give  you 
the  names  of  the  merchants  engaged  in  that  business,  and  the  steamers  em- 
ployed by  them  at  the  time  of  my  leaving  that  city  on  the  12th  uUimo.  L. 
Hyliger  and  John  B.  Lafitte,  of  Charleston,  are  agents  for  the  rebel  govern- 
ment. Their  business  is  principally  conducted  by  the  house  of  Henry  Adderly 
&  Co.,  of  Nassau.  The  steamers  at  present  employe  J  by  them,  and  owned  by 
themselves  and  the  rebel  government,  are  as  follows :  Alice,  Fannie,  Coquette, 
and  Antonica,  800  tons  each  ;  A.  D.  Vance,  950  tons  ;  Eugenie,  500  tons ;  and 
Heroine,  2S0  tons.  They  were  daily  expecting  an  addition  of  five  new  steam- 
ers from  England ;  one,  the  Hope,  to  be  1,500  tons,  and  very  fast ;  the  others 
about  400  tons  each.  All  the  above  named  steamers  carry  large  quantities  of 
arms,  ammunition,  and  plate-iron  each  trip. 

Atkinson  &  Co.,  a  Scotch  house,  are  agents  and  part  owners  of  the  steamers 
Mars,  Lucy,  Helen,  and  Rothsay  Castle,  each  of  about  400  tons,  side-wheel, 
and  about  twelve-knot  speed  in  ordinary  weather.  Watsoo  &  Co.  (English) 
are  agents  and  part  owners  of  the  steamers  Hansa  and  City  of  Petersburgh, 
and  were  owners  of  the  Alliance,  lately  captured  with  a  cargo  for  the  rebel 
government  on  board.  Chambers  &  Co.  (English)  are  agents  for  the  Syren. 
This  house  has  lost  (by  capture  and  being  run  ashore  and  destroyed)  the  steam- 
ers Don,  Dee,  Spunkie,  and  Pet.  The  latter  made  twenty -three  successful  trips 
each  way.    They  are  daily  expecting  four  new  ones  from  England. 

The  above  named  fourteen  steamers  now  running  make  one  trip  each  way 
about  every  three  weeks,  and  several  of  them  two  per  month,  carrying  full 
cargoes  each  way. 

The  principal  merchants  connected  with  this  trade  at  Nassau  are  :  H.  Ad- 
derly &  Co.,  Alexander  Johnson,  W.  D.  Alburv,  Wolf  &  Co.,  Ostheim  &  Co., 
Abrams  &  Co.,  Sawyer  &  Menendez,  John  J.  Turtle,  Perpall  &  Co.,  C.  Ren- 
ouard  &  Co.,  1),:  Yonge,  A.  T.  Holmes,  M.  C.  Knowles,  Manuel  Menendez, 
Royal  A.  Menendez,  T.  K.  Moore,  Dysarl  &  Co.,  II.  E.  Kemp,  J.  C.  Uahming 
&  Co.,  Hay  man  be  Brothers,  Bogart  &:  Co.,  Y\.  W.  U.  Weech  be  Co.,  John  S. 
H.  Rep. Com.  Ill  18 


274 


NEW  YORK  CUSTOM  HOUSE. 


George,  W.  J.  Wecch  &  Son,  H.  R.  Saunders  &  Sons,  John  Howard,  Jervey 
&:  Mueller,  Johnson  &  Brother,  Martin  &  Co.,  J.  Thompson  &  Co.,  Charles 
Harris,  and  Edward  Decker. 

I  could  mention  many  more  names  of  less  importance,  but  think  the  above 
sufficient  to  give  you  an  idea  of  the  trade  carried  on  at  Nassau  with  the  rebel 
States.  I  have  seen  very  large  quantities  of  goods  landed  at  Nassau,  (such  as 
boots  and  shoes,  cloths  and  clothing,  provisions,  drugs  and  medicines,  blankets 
marked  U.  S.  A.,  liquors,  &:c.,)  from  vessels  arriving  from  New  York,  Boston, 
and  Baltimore,  and  have  afterwards  seen  portions  of  the  same  goods  being 
shipped  on  board  blockade-runners  for  Wilmington  and  other  rebel  ports. 

These  blankets,  I  heard  from  a  friend  when  in  Nassau,  were  in  all  about  150 
bales,  and  that  they  were  carried  on  board  the  steamer  Governor  Bay  ley  after  she 
had  cleared  at  the  custom-house  and  anchored  in  the  stream.  The  blankets 
were  not  cleared  at  the  custom-house. 

Some  time  since,  in  conversation  with  George  Wolf,  of  the  firm  of  Wolf  & 
Co.,  he  remarked  to  me  that  he  had  but  a  short  time  before  paid  parties  in  the 
New  York  custom-house  fifteen  hundred  dollars  for  putting  one  lot  of  goods 
through,  as  he  expressed  it.  I  am  of  opinion  that,  should  matters  be  managed 
right,  sufficient  proof  could  be  obtained  to  convict  all  parties  at  the  north  con- 
nected in  any  way  with  the  shipment  of  goods  to  Nassau  merchants  for  rebel 
aid  and  comfort.  I  also  believe  that  a  large  majority  of  rebel  steamers  running 
to  Nassau  can  be  either  captured  or  destroyed  if  proper  means  are  employed. 

Testimony  of  Jonathan  Sturges. 

New  York,  April  20,  1SG4. 

Jonathan  Sturges  sworn. 
By  Mr.  Le  Blond  : 

Question.  Will  you  please  inform  the  committee  what  business  you  are  en- 
gaged in,  and  where  you  do  business  ? 

Answer.  Wholesale  groceries,  at  125  Front  street. 

Question.  Will  you  inform  the  committee  of  any  abuses  that  you  may  know 
in  the  custom-house,  in  regard  to  the  importing  of  goods  and  business  gener- 
ally, if  there  are  any  such  ? 

Answer.  There  are  some  tilings  which  have  taken  place  in  my  business  at 
the  custom-house,  where  I  felt  that  there  was  a  want  of  proper  regulations.  I 
do  not  know  that  there  was  anything  intentionally  wrong  in  the  course  that  was 
taken  by  the  officials,  and  the  measures  taken  by  them  might  have  been  hon- 
estly taken  for  what  they  thought  to  be  the  interests  of  the  government. 

Question.  Will  you  state  the  circumstances,  and  your  views  in  regard  to  the 
action  taken  ? 

Answer.  I  can  state  with  regard  to  one  very  important  case  that  occurred  in 
our  business.  I  can  state  my  own  views  as  to  the  propriety  of  the  action  taken 
by  the  custom-house  officials;  but  as  to  the  motives  which  induced  such  action,  of 
course  I  cannot  state.  The  particular  case  to  which  I  now  allude  was  in  rela- 
tion to  a  cargo  of  coffee  imported,  I  think,  in  November,  1862,  by  Mr.  John- 
ston, an  Englishman.  It  was  passed  regularly  through  the  custom-house, 
weighed  on  the  dock  in  the  ordinary  way  by  the  custom-house  weigher,  taken 
to  the  government  warehouse,  and  was  examined  by  the  appraisers  for  damage. 
The  entries  were  liquidated  at  the  custom-house,  the  duties  paid,  and  the  order 
given  to  Mr.  Johnston  on  the  warehouse-keeper  to  deliver  ;  that  is,  permission 
given  to  withdraw  the  coffee.  We  bought  that  cargo  of  coffee  of  Mr.  Johnston 
and  paid  him  the  money  for  it,  and  received  from  him  the  custom-house  permit 
and  an  order  on  the  warehouse-keeper  to  transfer  the  coffee  to  us. 


NEW  YORK  CUSTOM  HOUSE. 


27.") 


We  presented  Mr.  Johnston's  order  to  the  warehouse-keeper  as  evidence  that 
the  property  belonged  to  us,  and  received  his  receipt  for  the  coffee.  We  also 
presented  the  permit  to  the  custom-house  officer  having  charge  of  the  ware- 
house, as  evidence  that  all  the  duties  on  tin-  coffee  had  heen  paid,  and  that  we 
were  at  liberty  to  take  it  away  at  any  time.  We  are  in  the  habit  of  depositing 
all  permits  with  the  custom-house  officers,  at  the  different  bonded  warehouses 
where  we  may  have  goods,  as  soon  as  received,  as  a  matter  of  convenience,  that 
we  maybe  able  at  any  time  to  withdraw  such  lots  as  we  may  want. 

This  cargo  of  coffee  lay  there  five  or  six  weeks,  until  we  accidentally  heard 
thai  the  naval  officer  had  taken  the  permit  away  from  the  officer  in  charge  of 
the  warehouse  ;  that  the  property  was  taken  out  of  his  hands  by  the  with- 
drawal of  the  permit,  which  was  our  property,  and  which  we  had  lodged  with 
this  officer.  When  I  found  that  was  the  case.  I  immediately  went  to  see  Mr. 
Barney.  Mr,  Denison  happened  to  be  there  at  the  same  time,  and  the  discus- 
sion took  place  in  regard  to  this  matter  in  his  presence.  The  pretence  for  taking 
possession  of  the  coffee  was  that  it  fell  short  in  weight  from  the  Brazil  invoice 
weight  ;  that  the  government  did  not  get  duty  on  as  many  pounds  as  they 
should  have  got,  taking  the  Brazil  invoice  as  the  criterion. 

It  was  also  alleged  that  there  was  too  much  allowed  on  the  duties  for  dam- 
age. On  coffee  examined  by  the  appraisers  a  certain  amount  is  allowed  for 
damage,  and  the  custom-house  officials  not  only  report  the  damage,  but  the 
weight.  I  spent  two  hours  the  first  day  arguing  the  case  with  Mr.  Barney  and 
Mr.  Denison,  as  to  the  impropriety  of  seizing  this  cargo  of  coffee  which  we  had 
bought  of  Mr.  Johnston  and  paid  for,  and  which  we  had  been  authorized  to 
take  out  of  the  bonded  warehouse,  and  which  we  had  paid  Mr.  Johnston  the 
money  for,  upon  the  faith  of  this  custom-house  order.  Mr.  Jordan  asked  the 
question  whether  there  was  any  charge  against  Mr.  Johnston  of  having  colluded 
with  the  weigher  or  the  examiners  in  the  matter,  and  they  did  not  pretend  that 
there  was  any.  Mr.  Jordan  said  if  there  was  no  charge  of  collusion,  he  should 
suppose  it  could  not  be  considered  a  fraud  on  the  part  of  the  importers  to  ac- 
cept what  the  custom-house  authorities  chose  to  give  them.  I,  of  course,  took 
the  same  ground.  Mr.  Denison  asked  me  how  I  accounted  for  this  short  weight 
and  for  this  excessive  allowance  on  the  damage.  I  said  to  him  "  that  it  was 
not  my  business  to  account  for  it.  These  officers  are  not  my  officers  ;  they 
are  yours ;  and  if  you  have  not  got  honest  officers,  it  is  your  business  to  put 
them  out ;  but  you  have  no  right  to  seize  my  property  and  put  me  to  this  in- 
convenience because  your  officers  have  not  done  their  duty."  I  claimed  to  have 
that  permit  back  as  my  property  without  any  conditions  whatever.  I  said  to 
him,  "I  will  give  you  all  the  information  I  can  in  relation  to  this  matter,  or  any 
other ;  how  many  pounds  there  were ;  how  much  the  invoices  coming  from 
there  usually  fall  short,  &c. ;  to  enable  you  to  determine  whether  things  are 
properly  done,  but  not  as  a  condition  of  the  return  of  this  permit."  Mr.  Barney 
said  to  Mr.  Jordan,  finally,  "  This  is  a  case,  I  suppose,  in  which  we  will  be  jus- 
tified in  giving  up  the  property."  Mr.  Denison  whispered  in  Mr.  Barney's 
ear,  "You  should  know  that  this  is  one  of  the  cases  in  which  the  property  will 
be  confiscated."    I  must  say  that  this  expression  did  not  strike  me  favorably. 

Question.  Had  the  property  at  this  time  been  libelled  properly,  and  a  BuiJ 
instituted  ? 

Answer.  No,  sir;  they  only  held  it  out  of  our  possession  and  refused  to 
deliver  it  as  our  property.  It  was  finally  agreed  that  we  should  have  the 
permit  back  the  next  morning;  Mr.  Barney  said  we  should  have  it  at  halt'  past 
nine.  I  waited  until  twelve  o'clock  for  it.  and  then  I  sent  my  confidential  clerk 
to  ascertain  why  it  had  not  come,  and  the  reply  he  brought  was  that  they  Baid 
Mr.  Denison  had  the  order,  and  he  was  not  there.  I  felt  a  little  alarmed  at 
having  such  an  amount  of  property  tied  up  in  that  way,  and  I  went  up  again 
and  spent  two  hours  discussing  the  whole  question,  before  I  got  the  permit. 


276 


NEW   YORK  CUSTOM  HOUSE. 


Question.  How  much  would  that  property  amount  to,  tied  up  in  that  way? 
Answer.  I  think  it  amounted  to  about  6^00,000. 

Question.  How  loug  have  you  been  engaged  in  business  in  this  city  ? 

Answer.  Forty-two  years,  in  the  same  store  where  I  am  now.  I  said  to  Mr. 
Barney,  "This  is  a  tiling  that  I  cannot  submit  to  ;  you  have  more  than  a  million 
of  dollars  of  our  property  in  your  possession,  under  the  same  circumstances  as 
this,  and  you  can  seize  the  whole  of  it ;  you  may  withhold  the  whole  of  it  from 
us,  so  that  should  it  be  necessary  to  pledge  that  property  in  order  to  raise  money 
upon  it,  we  could  not  use  it;  and  if  you  have  a  right  to  take  possession  of  that 
property  in  this  way,  you  may  destroy  our  business."  And  furthermore,  I  said 
to  him,  "  We  have  two  or  three  cargoes  of  coffee,  of  our  importation,  passing 
through  your  hands,  which  we  shall  not  see  until  it  is  ready  to  be  delivered  ;  if 
you  have  any  suspicion  that  your  officials  are  not  doing  their  business  correctly, 
I  beg  you  will  see  that  they  are  doing  right,  so  that  we  shall  not  have  any 
trouble  hereafter  ;  if  you  have  not  faith  in  your  present  employes,  whose  business 
ir  is  to  attend  to  this  matter,  send  other  men  in  whom  you  have  confidence,  and 
when  you  have  done  that,  tell  me  how  much  there  is  to  pay,  but  don't  seize  our 
property."  After  an  argument  of  two  hours  again  on  this  second  day  that  I 
had  been  to  see  him  about  it,  I  got  the  permit.  The  impression  made  upon  my 
mind  at  this  time  was  that  Mr.  Barney  ought  to  have  decided  that  matter  very 
promptly;  that  he  was  not  master  of  the  position. 

Question.  Do  you  know  of  any  other  transactions  aside  from  this,  showing  a 
want  of  capacity,  or  a  disposition  on  the  part  of  custom-house  officials  to  oppress 
the  merchants  of  this  city,  on  the  part  of  Mr.  Barney  or  any  other  officers  1 

Answer.  I  do  not  know  that  I  do  any  case  that  has  not  been  promptly  cor- 
rected. We  had,  a  short  time  ago,  a  cargo  of  coffee  landing,  where  the  officer 
who  attends  to  the  discharge  of  the  vessels  made  us  a  good  deal  of  trouble  for  two 
days.  I  applied  to  Mr.  Andrews,  in  the  surveyor's  office,  and  he  corrected  it  at 
once ;  he  seemed  to  be  master  of  his  position. 

Question.  You  may  state  whether  intimations  have  been  made  to  you  that 
matters  could  be  closed  out  in  the  custom-house  in  any  other  than  the  usual  way 
of  doing  business  1 

Answer.  There  was  a  suggestion  of  the  kind  made  by  the  broker  who  attends 
to  our  business,  to  my  confidential  clerk  ;  I  think  it  was  when  the  change  took 
place  from  allowing  one  per  cent,  tare  on  coffee  to  one  pound  a  bag,  making 
Jib.  per  bag  less.  The  proposition  was  to  go  back  for  a  certain  length  of  time 
and  bring  up  these  cargoes  upon  which  one  per  cent,  tare  had  been  allowed,  and 
re-adjust  them  upon  the  basis  of  one  pound  a  bag.  It  was  intimated  to  us  that 
for  a  moderate  amount,  our  back  cargoes  would  be  passed  over  without, 
re-liquidation. 

Question.  Who  gave  this  intimation  1 

Answer.  It  came  from  the  custom-house  broker  who  does  our  business ;  A. 
C.  Washington. 

Question.  What  action  did  you  take  in  regard  to  the  suggestion  1 

Answer.  I  told  my  confidential  clerk  to  reply  that  we  would  not  be  a  party 
to  any  such  transaction,  and  to  be  sure,  if  there  were  any  cargoes  that  needed 
liquidation,  that  they  found  them. 

Question.  Did  you  tell  your  clerk  to  inquire  in  regard  to  what  persons  this 
money  would  be  paid  to  ? 

Answer.  No,  sir. 

Question.  Were  these  back  cargoes  liquidated  ? 

Answer.  My  confidential  clerk  says  he  thinks  he  heard  nothing  more  about  it. 
Question.  Did  you  accede  to  the  suggestion  made  by  your  broker  ? 
Answer.  No,  sir  ;  I  directed  my  clerk  to  tell  him  that  I  would  not  be  a  party 
to  any  such  transaction     With  the  exception  of  that  cargo  of  coffee,  of  which 


NEW   YOKK   CUSTOM  HOUSE. 


277 


I  have  spoken,  I  ought  to  say  that  our  business  lias  been  promptly  attended  to 
at  the  custom-house,  and  I  think  that  is  so  generally  with  the  merchants. 

Testimony  of  A.  T.  Stewart. 

New  York,  April  20,  18G4. 

A.  T.  Stewart  sworn. 

P>y  the  chairman  : 

Question.  You  are  receiving  goods  through  the  custom-house  ? 
Answer.  Yes,  sir. 

Question.  To  your  knowledge  does  your  house  pay  money  to  facilitate  entries 
or  the  transit  of  goods  through  the  custom-house  ? 
Answer.  I  answer,  no,  sir,  decidedly. 

Question.  The  committee  have  been  told  that  you  paid  $900  a  year  for  that 
purpose  % 

Answer.  There  is  not  a  word  of  truth  in  it.    I  have  always  refused  to  do 
anything  of  that  nature,  or  permit  it  to  be  done  in  any  shape  or  manner. 
Question.  Do  you  do  your  custom-house  business  through  a  broker  % 
Answer.  No,  sir ;  we  have  three  young  men  specially  employed  to  attend 
to  it. 

Question.  Have  you  any  knowledge  of  parties  in  this  city  at  present  paying 
money  for  favors  of  this  description  % 

Answer.  Xo,  sir.  I  have  heard  rumors  to  the  effect  that  you  could  get 
nothing  done  at  the  custom-house  without  pay,  but  that  is  not  true  in  my 
experience. 

Question.  It  has  been  charged  heretofore  that  there  were  great  delays  in  the 
transaction  of  business  at  the  custom-house  unless  money  was  paid,  and  there 
are  some  at  the  custom-house  now  who  insist  that  the  delays  about  which  com- 
plaints have  been  made  in  times  past  have  been  done  away  with,  and  that  busi- 
ness is  despatched  with  more  promptness  than  it  has  ever  been  before,  and  it 
has  been  said  that  you  could  testify  to  that  fact  if  you  chose.  We  would  like 
to  know  how  that  is  1 

Answer.  I  think  I  can  answer  that  fully  and  to  your  satisfaction.  The 
business  of  my  house,  which  is  large,  has  been  (with  one  exception)  attended  to 
pleasantly  and  satisfactorily — as  much  so,  if  not  more  than  it  has  ever  been 
under  former  administrations  ;  and  I  have,  with  the  exception  before  stated, 
always  experienced  an  earnest  desire  on  the  part  of  all  to  facilitate  and  execute 
promptly  the  business  assigned  to  each  official  with  a  due  regard  to  the  interest 
of  the  government  and  the  honest  importer. 

Mr.  Barney  and  Mr.  Denison  have  each  requested  me  to  come  to  them  if  I 
encountered  any  delay  in  passing  my  entries,  or  met  with  any  difficulty  in  our 
business  at  the  custom-house.  It  is  only  since  1859  that  I  have  attended  to  our 
custom-house  business.  Being  the  only  resident  partner,  this  duty  has  devolved 
upon  me,  and  it  gives  me  pleasure  to  state  that  in  all  my  intercourse  with  the 
custom-house  officials  I  have  received  the  greatest  courtesy,  kindness  and 
attention. 

During  the  past  year  they  have  made  more  strict  and  rigid  investigations  re- 
specting the  values  of  goods  imported  than  I  have  ever  before  known,  resulting 
in  great  changes,  of  immense  value  to  the  government  and  greatly  to  the  interest 
of  the  honest  importer.  There  were  certain  parts  of  the  world  from  whence  for 
many  years  past  we  could  not  import  goods,  because  we  could  purchase  them 
cheaper  here  than  their  cost  of  importation  ;  whereas,  under  the  present  sur- 
veillance at  the  custom-house,  all  parts  of  the  world  are  now  thrown  open  to 
fair  competition. 


278 


NEW  YORK  CUSTOM  HOUSE. 


Exhibit  E. 

Statement  of  examination  into  the  condition  of  the  bonds  taken  in  ninth  division. 


LIST  OF   BONDS   WITHOI  T  SUR ETI ES. 


21. 

55. 

49. 

90. 
184. 
247. 
291. 
292. 
293. 
294. 
301. 
303. 
305. 
320. 
319. 
324. 
325. 
343. 
344. 
345. 
357. 
362. 
367. 
370. 
388. 
389. 
401. 
421. 
427. 
437. 
442. 
452. 
461. 
471. 
472. 
473. 
442. 
452. 
461. 
47  J. 
472. 
473. 
474. 
475. 
476. 
485. 
486. 
487. 
488. 
492. 


Thomas  Tileston  

William  Walker  cancelled  

Asher  C.  Havens  do  

Henry  DuPont  do  no  justification 

Ungues  &  Macera  do  do. . . . 

13.  D.  L.  Fevre  do  do ... . 

A.  C.  Havens  do  do. . . . 

 do  do  do ... . 

 do  do  do ... . 

 do  do  do  

 do  do  do. . . . 

C.  B.  Dibblee  do  do.... 

A.  C.  Havens  do  do ... . 

 do  do  do ... . 


 do  

 do  

 do  

 do  

 do  

 do  

Joseph  Eneas  

A.  0.  Havens  

Edward  Turk  

C.  B.  Dibblee  &  Co 

A.  C.  Havens  

 do  

 do  

...... do  

Schieffin  Bros  


.do 
.do. 
.do. 
.do 
.do 
.do. 
.do. 
.do. 
.do. 
.do. 
.do. 
.do. 
do 
do. 
do. 


.do 
.do 
do. 
.do. 
.do. 
do, 
do. 


no  justification . .  . 

 do  

 do  

 do  

 do  

 do  


A.  C.  Havens  do  

Robert  Sargeant  

A.  C.  Havens  cancelled  

Isaac  L.  Lyon  no  justification.  . . 

A.  C.  Havens  cancelled   

 do  do  

 do  do  

Robert  Sargeant  

A.  C.  Havens  cancelled  

Isaac  L.Lyon   no  justification .. . 

A.  C.  Havens  cancelled  

 do  do   no  justification  .  .  . 

 do  do  

 do  do  

 do  

 do  .  .  .  .improperly  cancelled  no  justification.  .  . 

Schiefflin  &  Bro  cancelled  do  

 do  do  

 do  do  no  justification  . .  . 

 do ...  ,  do  

A.  C.  Havens. improperly  cancelled  


810, 000 
30 
100 
20, 894 
894 
50 
800 
150 
50 
4,  000 
1,600 
840 
3,  000 
50 
200 
200 
3,600 
50 
180 
50 
5,000 
75 
626 
1,840 
2,  800 
ISO 
80 
120 
300 
160 
200 
100 
10, 000 
50 
2,000 
150 
200 
100 
10,  000 
50 
2,000 
150 
150 
75 
2,  400 
900 
50 
1,  800 
150 
150 


NEW  YORK  CUSTOM  HOUSE.  279 

548.  A.  C.  Havens   $20 

582  do   50 

585.  Harrison  Price   300 

581.  H.  A.  Tilden  &  Co   900 

598.  H.  B.  Cromwell  &  Co  cancelled  no  justification  ...  10,  000 

601.  N.Durand  do   422 

611.  A.  C.  Havens  .   40 

614.  Sheldon,  Hoyt  &  Co   50 

618  do   100 

622.  A.  C.  Havens   80 

669  do  ... .  improperly  cancelled   100 

782.  Oliver  H.  King  no  justification .  . .  110,  000 

790.  H.  B.  Cromwell  &  Co  do   5,  000 

831.  Benedict,  Hall  &  Co          cancelled   500 

965.   do  do  no  justification.  .  .  3,000 

1019  do  do  do   4,  000 

1076.  Isaac  Lowrnan  do  do   1,000 

1139.  O.  K.  King  do  do   20,000 

1220  do  do  do   20,  000 

1309.  W.  C.  Riddell  &  Co   20 

1320.  F.  M.  Bixby  cancelled  no  justification.  . .  1,  000 

1384.  A.  C.  Havens  do   1,  200 

1386.   do   do   100 

1394.   do   50 

1467  do   160 

1537  do   250 

1608  do   50 

1624  do   50 

1646  do   50 

1753  do   300 

1830.   do   500 

1831  do   75 

1896  do  no  justification...  1,465 

1S97  do   50 

1992.  Wm.  T.  Vansandt  ,   568 

2030.  A.  C.  Havens                                                               . .  75 

2087  do   50 

2158.  Wm.  T.  Vansandt   2S6 

2240.  A.  C.  Havens   200 

2285  do   150 

2300  do   500 

2325  do   500 

2351.  Charles  A.  Whitney  no  justification ...  1,  800 

2418.  A.  C.  Havens   50 

2492  do   50 

2663.  Henry  Du  Pont  no  justification .  .  .  10,  800 

2815.  A.  C.  Havens   100 

2829  do   150 

2S30  do   200 

2853  do   200 

2S72  do                                                        .  .  .*   150 

3027.  New  York  Mail  Steamship  Company  no  justification  ...  2,  400 

3029  do  do   4,000 

3042.  A.  0.  Havens   50 

3183  do   50 

3279.  E.  Du  Pont  no  justification  ...  2,  100 


NEW  YORK  CUSTOM  HOUSE. 


3305. 
34S6. 
350G. 
3507. 
3G4S. 
3922. 
397S. 
3979. 
4009. 
4053. 
4095. 
4142. 
4141. 
4173. 
4390. 
1  131. 
44S1. 
4614. 
4645. 
4735. 
4S24. 
4S3G. 
4837. 
4950. 


A.  C.  Havens  

 do  

 do  

 do  

 do  

Elijah  0.  Hyde  no  justification 

Calvin  E.  Knox  

George  F.  Peniston  

A.  C.  Havens  

E.  O.  Hyde,  (cancelled)  

M.  Echeverria    

James  W.  Foster  

Henry  DuPont  

A.  C.  Havens  

 do  

E.  C.Hyde  

Pacific  Mail  S.  S.  Company  

Freeman  Dodge  

Henry  DuPont  

E.  C.Hyde  

James  L.  Davis  

A.  C.  Havens  

 do   . 

 do  


no  justification 


$100 
50 
500 
75 
100 
1,  174 
200 
339 
900 
1,  422 
21,  676 
500 
5,  700 
500 
500 

1,  500 
500 
100 

2,  600 
523 
100 
500 
500 
500 


LIST  OF  BOXDS  WITHOUT  SEALS. 


315.  B.  N.  Fox  cancelled  by  oath 

330.  C.  &  H.  G.  Schmidt   . 

337.  L.  M.  Bean  cancelled  

388.  A.  C.  Havens  do  

389  do  do  

529.  Henry  Osborne  

535.  James  K.  Chichester  

S72.  John  R.  Bacon  

873  do  cancelled  

1089.  J.  B.Tyler  ,  

1095.  W.  O.Bush  

1177.  Joseph  Eneas  

1242.  F.  Lammis  

1307.  Joseph  Eneas  cancelled.  . .  . 

1387.  Wm.  G.  Oldrich  

1506.  J.  Wolf  cancelled.... 

1530.  George  F.  Stewart  do  

1734.  Daniel  &  Co  do  , 

1735.  .      do  do  

1736  do  do  

1801.  F.  Smith  

2249.  John  R.  Bacon  

2258.  E.  R.  Jones  

2341.  Wm.  M.  Young  

2343  John  B.  Martli^g  

2357.  Daniel  Joline  

2358.  D.  Walling  

2384.  D.  Bedell  

2399.  W.  Hughes  

2403.  L.  P.  Morton  


30O 

4,05a 
500 

2,800 
ISO 
500 
50O 

2,535 
10, 000 
500 
500 

4,  284 
200 
810 
500 

2,  700 
700 

10, 000 
10,  00O 
46, 000 
500 

3,  660 
50O 
500 
500 
500 
500 
500 
500 
500 


NEW  YORK  CUSTOM   HOUSE.  281 

•2413.  J.  H.  Provost   $500 

2433.  Joseph  Allen   500 

244S.  E.  H.  Chambey   500 

2451.  C.  Hillman   ,   500 

1327.  Joseph  Eneas   12,000 

2532.  Thomas  Cranraer   500 

2533.  C.  H.  Prior   500 

2558.  E.  Geir   500 

2537.  G.  P.  Johnson   500 

2614.  J.  Teal   500 

2631.  G.  W.  Smith   500 

2700.  G.  W.  Leavitt   500 

2724.  Charles  Jackson   500 

2738.  13.  Edwards   500 

2753.  J.  W.  Sprague   500 

2786.  John  B.  Martling   500 

2787.  A.  L.  Letts    500 

2788.  S.  1).  Rulan,  (cancelled  by  oath)   500 

2797.  John  Daly   500 

2S08.  J.  D.  Caen   500 

2809.  John  Bodine   500 

2839.  V.  Abrams   500 

2840.  N.  Hedden   500 

2865.  D.  E.  Cubberly   500 

2867.  E.  F.  Beveridge   500 

2S72.  A.  C.  Havens   150 

2924  do   200 

2931.  R.  C.  Conklin   500 

2947.  J.  P.  Jones   500 

294S.  W.  H.  Fargo   500 

2950.  C.  E.  Bishop   500 

2952.  B.  Lyman   500 

2970.  E.  W.  Chambers   500 

2971.  A.  T.  Wood     500 

2972.  A.  C.  Nickle   500 

2973.  J.  Soper   500 

2995.  John  Daley   500 

3S40.  C.  B.  Grumley   500 

4007.  C.  E.  Bishop   500 

4110.  B.  Lyman   500 

4280.  James  H.  Terry   500 

4383.  C.  B.  Smith   500 

LIST  OF   BONDS  1 1\ CORRECTLY  SIGNED. 

311.  McKesson  &  Bobbins,  not  signed  by  individual,  (cancelled  by 

certificate)   150 

351.  Darrell  &  Co,  not  signed  by  individual   1,  07S 

369.  Campaignac  &  Co  do   1 .  800 

449.  Howell  &  King  do   1,  50S 

526.  A.  Conditt,  (Cimdiff)   500 

543.  Samuel  Jarrett   500 

664.  H.  A.  Bayles,  signed  "  H.  E.  Bayles"   500 

681.  F.  Wright,  signed  "  T.  Wright"!'   500 

710.  J.  B.  Smith,  signed  "  J.  L.  Smith  "...   :   100 

715.  J.  W.  Morris,  (cancelled)   SO 


282  NEW  YORK  CUSTOM  HOUSE. 

717.  A.Sibley,  "  Miles  Edwarst "   $500 

721.  Daniel  Stent,  "  B.  S.  Stout"   500 

728.  Alex.  Waithman,  not  individually  signed   500 

740.  E.  Birdsall,  error  in  sureties   500 

852.  Wm.  Meekins,  "W.  K.  Merkins"   500 

S64.  George  H.  Leavitt,  "  W.  Leavitt  "   500 

S67.  John  Faissin,  (cancelled)   500 

930.  Thomas  Gardner,  error  in  surety   500 

976.  R.  E.  Peacock  do   500 

9S9.  Isaac  D.  Wood,  signed  "Ward"   500 

991.  Jno.  B.  Hudson,  signed  "J.  Hudson"   500 

1056.  Peter  Turpin,  error  in  surety   500 

1120.  Amos  Birdsall,  error  in  surety   500 

1142.  Ckas.  H.  Prior,  error  in  surety   500 

1186.  A.  R.  Kelley,  signed  James  R.  K   500 

1450.  Geo.  Rutland,  "Geo.  C.  Reeveland"   500 

1460.  Jos.  Tyler,  "Jos.  F.  Tyler"   500 

1461.  C.  H.  Davis,  error  in  surety   500 

1501.  B.  Nicholas,  "J.  B.  Nichols"   500 

1533.  Jno.  A.  Freeman,  "Salem  A.  Foreman"   500 

1571.  Theo.  Gardner,  "  Thos.  Gardner"   500 

1605.  Smith  Petty,  error  in  surety   500 

1606.  Samuel  Pintard,  error  in  surety   500 

1922.  John  Ceballos,  improperly  signed   3,729 

1861.  C.  P.  Manden,  irregular.   6,  500 

1S71.  Morris  Osborne,  irregular   500 

1S93.  L.  Chance,  error  in  surety   500 

1884.  J.  H.  Hertz,  improperly  executed   4,615 

1995.  John  Decker,  improperly  signed   500 

1906.  Jno.  B.  Martling,  improperly  signed   500 

1929.  A.  Leo,  improperly  signed   1,200 

1959.  N.  M.  Lamson,  improperly  signed   500 

2044.  J.  L.  Pinson,  improperly  signed   500 

2233.  Enoch  Lewis,  "Edw'd  L"   500 

2259.  J.  F.  Scott,  "  G.  T.  Scott"   500 

2988.  Moses  Gaskell,  "Yorkell"   500 

3480.  Judson  Roberts,  "Newell  S.  Roberts"   500 

3495.  Lucius  L.  Butler,  improperly  signed   500 

3557.  A.  G.  Troop,  error  in  surety   500 

3562.  Josiah  Falkenburg,  error  in  surety   500 

3718.  E.  W.  Spever,  "  E.  W.  Sper"   500 

3773.  Wm.  Joiner,  "  Wm.  T.  Joiner"   500 

3776.  Ludlam,  Hinckin  &  Co.,  by  the  company   1,  000 

3783.  Wm.  Randolph,  error  in  surety   500 

3798.  C.  O.  Pierson,  "Charles  A.  Pierson"   500 

3799.  Spofford,  Tileston  &  Co.,  "by  the  company"   2,200 

3881.  Tynes  Smith,  by  the  company   1,  210 

4000.  M.  A.  Brown,  improperly  signed   500 

4112.  Chas.  O.  Jester,  error  in  surety   500 

4249.  A.  Thomas,  "Thompson"../   500 

42S2.  Leoin  Chanse,  no  such  signature   500 

42S4.  L.  N.  Hairey,  error  in  surety   1,  700 

4287.  Holyoke  &  Rogers,  error  in  surety   2,  550 

4331.  J.  L.  Hawkins,  "J.  D."   500 

4367.  Jones  &  Lough,  by  firm   400 

4368.  McCall  &  Smith,  by  firm   12,  348 


NEW  YORK  CUSTOM  HOUSE.  283 

4395.  E.  Barnard,  "E.  Bonner"   $500 

4112.  J.  A.  Longstreet,  error  in  snretv   500 

441S.  A.  C.  Mickle,  "Nickle"   500 

4438.  Henry  Baker,  "  Henry  Buhr"   500 

4464.  Jas.  F.  Lough,  "Geo.  F."   462 

4473.  Robert  McKaig,  "Robert  Kaig"   500 

4478.  N.  B.  Post,  "Nicholas  P."   500 

4495.  H.  P.  Goodale,  sureties  "Merrill  &  Abbot"   500 

4503.  Isaac  Demon  "Demmou"   500 

4573.  A.  Barrett,  error  in  surety   500 

4576.  A.  (J.  Mickle,  "  Nickle"   500 

4G24.  M.  Cox,  error  in  sureties   500 

463S.  Darrell  &  Co.,  signed  without  the  "Co."   479 

4647.  Jabes  Lyon,  error  in  surety   500 

4677.  A.  Soper,  error  in  surety   500 

4750.  Negrette  &  Leoni,  "  Leoni"  alone   413 

4S44.  W.  II.  Snyder,  "Syder"  in  bond   500 

4859.  J.Thompson,  "A.  Thompson"   500 

4905.  E.  G.  Amy,  "Allen  C.  Amy"   500 

490S.  J.  Robinson,  "  Robins"   500 

4940.  John  Kirk,  "J.  W.  Kirk"   500 

4958.  Valentine  &  Berger,  "Berger"  only   14,  000 

4963.  P.  N  Grunby,  "  N.  B.  Grumby"   500 

LIST  OK   BONDS  WHERE   SURETIES  OR   PRINCIPAL   HAVE   NOT  SIGNED. 

327.  A.  C.  Havens,  not  signed  at  all   270 

460.  P.  E.  Wellington,  not  signed  by  surety   320 

614.  Shelton,  Hoyt  &  Co.,  not  signed  at  all   50 

964.  Oliver  K.  King,  not  signed  by  surety   15,  000 

973.  Stephen  D.  Inman,  not  signed  at  all   500 

30S7.  M.  W.  Richardson,  not  signed  by  principal   500 

1220.  O.  K.  King,  (cancelled,)  not  signed  by  surety   20,000 

4142.  James  W.  Foster,  not  signed  by  surety   500 

4645.  James  W.  Foster,  not  signed  by  surety   500 

4646.  A.  Cundiff,  not  signed  by  surety   500 

4709.  J.  L.  Pierson,  not  signed  by  surety   500 

4448.  Hiram  Nott,  not  signed  by  surety   15 

LIST  OF   MISSING   BONDS  RECORDED. 

(There  are  bonds  missing  which  are  not  recorded.) 

16.  Oliver  M.  Pettit  . ...  4,900 

30.  Jas.  O.Watkins   1,200 

281.  B.  Blanco   5,  956 

395.  Jno.  W.Daniels   500 

448.  Wm.  Barkley,  (cancelled)   295 

521.  Joseph  Eneas   10,  000 

981.  W.  P.  Clock   500 

1243.  S.  M.  Knevans   30,  000 

1378.  Peter  Metzer    11,  000 

1814.  Jno.  A.  Foreman   500 

1592.  Geo.  G.  Fletcher   500 

1593.  Jas.  Bodine   500 

1622.  Joshua  Gordon   50 

1714.  Hazard  Powder  Co.,  January  4,  1S64,  found  by  Mr.  Ward.  .  2,  SS0 


284  NEW  YORK  CUSTOM  HOUSE. 

1724.  Joseph  Eneas,  (cancelled)   $17,500 

L799.  Hazard  Powder  Co.,  January  4,  1SG4,  found  by  Mr.  Ward  .  .  1,  8G0 

1S32.  Jos.  Eneas  "   2,000 

1970.  Hazard  Powder  Co.,  January  4,  1S64,  found  by  Mr.  Ward.  .  694 

197o.  Jos.  Eneas  ■   17,000 

224S.  .  .  .do   5,  000 

2605.  Schepeler  &  Co.,  January  4,  1864,  found  by  Mr.  Ward   34,  316 

3S60.  Thos.  D.  Middleton    4,  478 

3945.  Middleton  &  Co   7,  084 

4207  do   25,755 

4531.  Ogden  &  Lacombe   8,  026 

LIST  OF  BONDS  IMPROPERLY  C  ANCELLED,  HAVING  MERELY  THE  WORD  "  CAN- 
CELLED"  WRITTEN  ON  THE  BOND,  WITH  THE  INITIALS  OF  "  D.  CADY  STAN- 
TON," AS  BOND  CLERK. 

447.  F.  Victor   $2,558 

54S.  Asher  C.  Havens   20 

563.  T.  S.  P.  Brown   500 

577.  J.  Jones   500 

657.  Win.  M.  Cole    200 

663.  Thos.  F.  Loveland   500 

707.  J.  G.  Cooper   500 

831.  Benedict,  Hall  &  Co   500 

795.  David  Conoyer    100 

904.  Edward  Cole   500 

1004.  Rich'd  Dickman   500 

1345.  Edward  Cole   500 

1347.  Wm.  Johnson   500 

1364.  F.  G.  Falkenburg   500 

1365.  V.  Brewer   500 

1366.  David  Conover   100 

1568.  Benja.  Edmunds   500 

1519.  F.  C.  Bennett   500 

1414.  Jas.Holcomb   200 

6(»9.  A.  C.  Havens,  (on  master's  statement)   100 

476  do  (on  master's  statement)   2,  400 

BONDS  WITHOUT  REVENUE  STAMPS. 

1118.  James  Robinson   500 

1117.  Jos.  Eneas   4,  2S4 

1215.  John  M.  Davies  &  Co   1,  422 

1753.  J.H.  Stewart   20,  000 


Remainder  of  statement  is  a  list  of  cancelled  bonds,  as  appears  by  the  record 
books. 


NEW   YORK   CUSTOM  HOUSE. 


285 


Exhibit  F. 

List  of  bonds  given  by  Lewis  Benjamin  and  others  for  goods  shipped  to  Nassau, 
Bermuda,  and  Matamoras. 


Principal. 


and 


Surety. 


S.  S.  Wyckoff  &  Co   A.  M.  Palmer 


Bonds  of  Benjamin 
others — 

Lewis  J.  Levy  

 do  


 do  

 do  

Solomon  Seixas 
 do  


Solomon  Seixas. 
 do  


Where  Bhipped. 


Nassau 
...do.  . 


.do. 


Lewis  Benjamin 
 do  


 do  

Lewis  Benjamin 

 do  

 do  


.do. 


Malcolm  Campbell 

 do  

 do  


...do  

...do.  ... 
Bermuda 
Nassau  . . 
...do  


 do  

c.  Shepard   

Win.  W.  Russell 
A.  Boffnung  


G.  G.  Wolf . 
A.  Hoffnuns 


.   S.  Seixas  

 do  

:  Wm.  A.  Smalley  

I  Wm.  A.  Smalley  and 
L.  Benjamin. 

Wm.  «\.  Smalley  

 do  


'....do. 
....do. 
....do. 
....do. 
....do. 
....do. 


 do  

 do  

 do  

 do  

 do  

S.  McDonald. 
A.  Hoffnung  . 

S.  Seixas  

G.  G.  Wolf  . . 

 do  

A.  Hoffnung  . 


Benjamin 
..do  

...do  

...do  

...do  

..do  

...do  


...do  ... 
Bermuda . 
Nassau . . 

...do  

Bermuda 
Nassau . . 
...do.  ... 
Bermuda 
...do  


 do  

 do  

 do  

W.  A.  Smalley  . . . 

T.  A.  R,  Webster. 


Nassau  . 

....do.  .. 
.L...do.  .. 
.  ....do... 
.'....do.  .. 


Amount  of  Should  have 
bond.     ;  been. 


$390  00  

4, 125  00   

4, 702  00   

4,691  00   

4,  533  00   

4,060  00   

1, 082  00   

2,  540  00   

4,  800  00   

8,  .346  00       $9, 170  00 

9,  470  00   

4, 867  00        5,  348  00 

7,018  00   

6,  101  00  26,  386  46 
8,577  00  j  

*  10,  000  00   

28,  796  00  I  83,  757  72 
3,710  00  .1  4,  7?0  w 
4,786  00  |5  44,  "~  04 

I, 797  00   

1,  693  00  i  13,  564  94 
6, 976  00  j     25,  505  48 

7,  223  00   

1,  114  00   

21,002  00   

6,437  00       34,631  46 
t23,  140  00  j     70,  453  52 
4, 108  00  !  

2,  843  00   


*  Goods  covered  by  this  bond  were  landed  from  the  Margaret  and  Jessie. — (See  Documeut  A.) 

t  Goods  covered  by  this  bond  were  landed  from  on  board  of  the  Margaret  and  Jessie. — (See  Document  A.) 


Exhibit  G. 

United  States  Consulate, 

Matamoras,  June  10,  IS63. 

Sir  :  I  received  yesterday  a  printed  document  containing  information  as  to 
cancelling  bonds,  and  I  have  accordingly  to-day  refused  to  indorse  anv  invoices 
or  bills  of  lading,  unless  "positive"  proof  can  be  shown  that  they  are  for 
Mexican  consumption. 

There  have  probably  been  a  grent  many  certificates  presented  to  the  custom- 
house that  goods  had  been  landed  and  sold  here,  or  that  they  had  only  been 
landed  here.  I  told  those  getting  them  that  they  would  be  of  no  avail;  but  as 
they  wished  for  them,  I  gave  them.  Those  that  1  have  given  as  beinu-,  to  tie' 
best  of  my  knowledge  and  belief,  intended  for  consumption  in  Mexico,  have  not, 
in  any  instance  that  I  am  aware  of.  got  into  Texas. 

There  is  to-day  a  great  excitement  among  the  merchants,  particularly  the 
Jews;  but  as  I  remarked  in  a  former  letter,  a  great  portion,  say  eighty  per  cent, 
of  all  goods  imported  here  are  sold  directly,  or  find  their  way  t  >  Texas. 


286  NEW  YORK  CUSTOM  HOUSE. 

Immense  stocks  are  also  being  imported  from  France  and  England,  and  both 
banks  of  the  Rio  Grande  are  piled  up  with  cotton,  as  well  as  the  road  from  the 
interior  of  Texas  to  the  river. 

Flour,  corn,  and  many  other  articles  are  selling  here  at  present  below  New 
York  prices. 

I  am,  sir,  very  respectfully,  your  most  obedient, 

L.  PIERCE,  Jr., 

United  States  Consul. 

Hon.  Hiram  Barney, 

Collector  of  Customs,  New  York. 


# 


I 


i£x  ICtbrtB 


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